Foreign funds net selling hits RM388m as ringgit weakens

Foreign funds net selling hits RM388m as ringgit weakens

Tuesday, 11 August 2015
By: NG BEI SHAN

[size=16]KUALA LUMPUR: Malaysia’s FBM KLCI closed down nearly 18 points on Tuesday, in line with the Asean markets, while the ringgit continued to weaken against the US dollar as investor sentiment was battered by China’s devaluation of the yuan.

At 5pm, the KLCI was down 17.66 points or 1.07% to 1,636.71 which was the lowest since March 2013. Turnover was 1.98 billion shares valued at RM2.02bil. Losers beat gainers 529 to 290 while 346 counters were unchanged.

Stock market data showed foreign funds were net sellers on Bursa Malaysia at RM388mil on Tuesday though retail investors turned net buyers at RM30.88mil and local institutions were net buyers at RM357.64mil.

Reuters reported China's shock 2% devaluation of the yuan on Tuesday pushed the dollar higher and raised the prospect of a new round of currency wars, just as Greece reached a new deal to contain its debt crisis.

Stocks fell in Asia and Europe as investors worried about the implications of a move designed to support China's slowing economy and exports.

Asean markets were most hit by the selling of equities, as Jakarta’s Composite Index slumped 2.66% to 4,622.59, Thailand’s SET lost 0.83% to 1,408.32 and Singapore’s Straits Times Index fell 1.36% to 3,153.06.

At Bursa Malaysia, Maybank came under selling pressure and closed down 28 sen to RM8.52 and wiped out 4.49 points from the KLCI. RHB Capital lost 19 sen to RM6.96, AmBank 18 sen to RM5.26, Public Bank lost 16 sen to RM18.72, CIMB and Hong Leong Bank six sen each to RM5.05 and RM13.18.

US light crude oil fell 71 cents to US$44.24 and Brent 63 cents lower at US$49.78. Petronas Dagangan lost 70 sen to RM20.58, Petronas Gas 20 sen to RM21.58 and Petronas Chemicals three sen to RM5.98.

Heavyweight Sime Darby lost 24 sen to RM8.16 and wiped out 2.51 points from the KLCI. KL Kepong was down two sen to RM21.48, IOI Corp was flat at RM4.05 but PBB Group gained 10 sen to RM15.30.

Consumer stocks also came under pressure with BAT down 98 sen to RM62.02 and Carlsberg lost 40 sen to RM12.

Time dotCom lost 29 sen to RM5.91 while UMW skidded 17 sen to RM9.63.

Genting Bhd lost 12 sen to RM7.76 and Genting Malaysia eight sen to RM3.97.[/size]