Bursa Malaysia continued to experience its ninth week of foreign attrition, analysts observed in a recent fund flow report, mirroring markets elsewhere in Asia. — Bernama photo

KUCHING: Bursa Malaysia Bhd (Bursa Malaysia) continued to experience its ninth week of foreign attrition, analysts observed in a recent fund flow report, mirroring markets elsewhere in Asia.

However, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) pointed out that the ninth week of foreign attrition was at a slower pace.

According to MIDF Research, based on preliminary data from Bursa Malaysia which excluded off market deals, the amount disposed by foreign investors last week retreated below RM1 billion to RM705.4 million net.

“Offshore investors were net sellers from Monday to Thursday with none of the days recording attrition above RM300 million net,” the research arm said.

“Monday had the highest net outflow during the week of RM291.4 million as the escalating trade dispute between the US and China stoked risk aversion.”

MIDF Research noted that despite foreign selling activity slowing down to a tune of RM206.1 million net later on Thursday, the FBM KLCI dropped further to 1,665.68 points.

It further noted that this was the lowest close since January 2017 following the slump in Wall Street overnight spurred by the comments by President Donald Trump’s economic adviser, Larry Kudlow on the US’s hard line on trade in spite of Trump’s softer stance.

“The tide turned in Friday when foreign investors mopped up RM259.4 million net, snapping a 37-day long episode of foreign attrition amidst window dressing activites.

The FBM KLCI followed suit to snap its four-day losing streak by closing 1.55 per cent higher that day, the biggest daily gain so far in 2018.”

The research arm noted that Friday’s foreign net inflow is in conformity with other regional peers it tracked namely the Philippines, Thailand and Indonesia.

On another note, MIDF Research highlighted that the month of June saw the amount of net outflows from Malaysia reach RM4.93 billion.

“This brings the first half of 2018 (1H18) cumulative outflow in 2018 to RM6.82 billion net, offsetting more than half of last year’s total net inflow of RM10.33 billion.”

“Nonetheless, Malaysia still has the second lowest outflow amongst the four Asean markets we monitor after the Philippines on a year-to-date basis.”

As for the participation levels of foreigners, retailers and local institutions, these experienced a weekly dip.

“Nonetheless,activity levels are still deemed healthy as the average daily trade value (ADTV) is still above RM800 million for retailers,RM2 billion for local institutions and RM1b for foreign investors.”

British American Tobacco (Malaysia) Bhd registered the highest net money inflow of RM10.69 million last week, followed by ViTrox Corporation Bhd which recorded the second highest net money inflow of RM10.43 million.

Dialog Group Bhd saw the third highest net money inflow of RM6.87 million.

As for outflows, Public Bank Bhd saw the largest net money outflow of RM17.29 million last week.

MY EG Services Bhd recorded the second largest net money outflow RM10.43 million during the week under review while Petronas Chemicals Bhd registered the third largest net money outflow at RM8.13 million.