Fund Flow Foreign funds sold RM161.3 million last week, says MIDF Research

by **Cals** Tue 08 Dec 2015, 01:24

Fund Flow

[size=28]Foreign funds sold RM161.3 million last week, says MIDF Research

By Surin Murugiah / theedgemarkets.com | December 7, 2015 : 10:06 AM MYT

KUALA LUMPUR (Dec 7): Foreign funds sold RM161.3 million in the open market last week, reversing the RM128 million mopped up in the week before, according to MIDF Research.

In his weekly fund flow report today,MIDF Research head Zulkifli Hamzah however said it was not a case of one-way traffic.

He said Bursa Malaysia actually reported net inflow of foreign money in the first two days of the week.

He said that in particular, Tuesday proved to be an auspicious first trading day for December as foreigners bought RM126.1 million net.

He said it was relatively aggressive as the amount was the highest in 26 trading days.

“The attrition started on Wednesday and turned heavy on Thursday as the outflow hit RM200 million. Selling momentum eased on Friday.

“For 2015, last week’s deficit increased the cumulative net foreign outflow to RM18.5 billion, compared with the RM6.9 billion outflow for the entire 2014,” he said.

Zulkifli said the final tally for November was RM1.0 billion net outflow, revesing the RM622 million net inflow in October.

Meanwhile, he said foreign participation (i.e gross trade) “exploded” last Monday, the last day of November, hitting RM4.19 billion, the highest this year.

He said the previous high was RM3.68 billion, coincidentally on the last trading day of May.

Zulkifli said last Monday’s surge in foreign participation raised the participation rate for the week (average daily gross trade) to RM1.68 billion, the highest this year.

He said excluding Monday, the participation rate for the week was RM1.06 billion, still relatively high.

He said it appeared that the low volume season had been rather transient this year.

“Local institutions supported the market last week mopping up RM232.3 million net on yet active RM2.22 billion participation rate.

“The market for small cap stocks proved to be resilient despite signs of edginess leading up to last week.

Zulkifli said prices of small cap stocks held steady although retailers offloaded RM71 million net, adding that participation rate plunged to RM669 million, compared with an average of RM923 million in the previous four weeks.

Retailers are on the sideline, he said.
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