KUALA LUMPUR: Foreign investors offloaded a higher value of Malaysian equities in August. The total net outflow of RM2.6 billion is the largest since June 2018, when foreign investors sold RM4.93 billion worth of local equities, said MIDF Amanah Investment Bank Bhd Research.

“Nevertheless, this was the second-lowest monthly foreign net outflow among the seven markets we monitor,” the research house said. “On a year-to-date basis, the foreign net outflow from Malaysia stands at RM7.34 billion.”

On a weekly basis, MIDF said offshore investors continued to reduce their exposure to Bursa Malaysia-listed stocks for the seventh straight week last week.

It said foreign funds offloaded RM324.5 million in net local equities during the week. But this was the lowest in comparison to the other six markets MIDF covers, namely South Korea, Taiwan, Thailand, the Philippines, India and Indonesia.

The foreign funds sold RM243.3 million in equities last Monday, on the back of US-China trade tensions escalating with both countries slapping new tariffs on each other’s goods.

“[Last] Tuesday, the level of foreign net selling activity inched higher to reach RM293.6 million, the highest in three weeks. This was despite President Trump saying that the US still wants a deal after praising comments by China’s chief negotiator on trade,” said MIDF.

Last Wednesday presented a reprieve in foreign net outflows as foreign investors sold a lower level of equities totalling RM13.2 million. However, the FBM KLCI dropped 0.1% to 1,589.8 points.

Nevertheless, foreign investors returned with equity purchases of RM48.5 million last Thursday and RM177.1 million last Friday.

“As such, the 18-day foreign net selling spree was snapped and the local stock barometer jumped 1.1% to 1,612.1. Optimism was sparked by China’s plan to not immediately respond to the latest round of tariffs announced by the US effective on Sept 1, 2019,” said MIDF.

In terms of inflow, Petronas Chemicals Group Bhd registered the higher net money inflow of RM5.45 million last week. However, its share price dropped 2.46% for the week, underperforming the KLCI which had a 0.17% weekly gain.

DRB-Hicom Bhd saw the second-highest net money inflow of RM4.36 million last week. Despite this, its share price ended 14.58% lower, also underperforming the KLCI.

Dialog Group Bhd was in third place, with a net money inflow of RM3.91 million. Its share price was unchanged as at the end of last week.

Conversely, Alliance Bank Malaysia Bhd saw the largest net money outflow last week, to the tune of RM4.59 million, with the counter closing 10.18% lower for the week, thus underperforming the 0.17% gain seen in the KLCI.

Genting Malaysia Bhd recorded the second-largest net money outflow of RM3.43 million last week. Its share price rose 1.29% during the weak, outperforming the KLCI.

Tenaga Nasional Bhd was in third place, registering a net money outflow of RM2.63 million. Its share price was 1.45% higher for the week, outperforming the local benchmark.