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Tuesday, December 9, 2014

Retail investors mop up Malaysian equities, foreigners exit

KUALA LUMPUR: Foreign funds continued to reduce their shareholdings in Malaysian equities in the week ended Dec 8 with net selling surging to 839.9mil, MIDF Equities Research said.
The research house said on Monday the net selling was the fourth highest in a week this year but retail investors were noticeably mopping up shares for the fifth week running.
“Retailers bought +RM255mil net last week, the highest this year. It is apparent that mainly retail investors with holding power are finding listed shares attractive at current levels, as the participation rate was only moderate at RM805mil last week,” it said. 
Elaborating on the foreign selling, MIDF Research said in the week ended Dec 5, foreign portfolio investors were net sellers every single day and they had been selling for the last eight days in a row.
“The amount of outflow exceeded RM200mil on Wednesday and RM300mil on Friday. The net sale of -RM316mil on Friday was the eighth highest in a day this year. Still, the intensity of daily sale was higher in 2013 compared with that so far this year,” it said.
MIDF Research said the amount sold last week was still lower compared with that recorded in the January-February period this year.
“That two months has been the most disconcerting phase of money outflow so far this year,” it said. 
MIDF Research said both local institutions and retailers supported the market. Retail investors were noticeably mopping up shares for the fifth week running. 

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