Sales Abroad Decreased to RM531.8mil Last Week – Business News



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KUALA LUMPUR: Selling foreign funds on Bursa Malaysia declined to RM531.8mil in the week ended July 13, slowing by net sales of RM704.3mil a week earlier, according to MIDF Research. Preliminary data from Bursa that excludes off-market transactions, the amount sold by global funds last week fell to RM531.8m net.


"This is the lowest weekly foreign attrition recorded since the week ending May 11, 2018," said MIDF in its weekly report on cash flow.


The research firm said net foreign sales levels remained above RM 100 million for the first three days, with the highest of the week at RMB 177.4 million. Market sentiment in Asia improved on Wednesday, supported by gains on Wall Street after PepsiCo's solid quarterly results.


This then capped the amount of foreign capital outflows that totaled RM112.9milnet.


The MIDF noted that net outflows of foreign capital fell below RM 100 million on Thursday and Friday to RM 52 million and RM 57 million, respectively.


"The slowdown in net sales abroad is mainly due to: the go-ahead given by the government for LRT 3 projects on a smaller scale and the possibility of a resumption of trade negotiations between Washington and Beijing, "said the research house.


The FBM KLCI has followed suit to finish above 1,700 points for the first time since Thursday, June 20 and has exceeded this level for the week


Among the four asean markets controlled by the MIDF, Korea South is the second largest after Thailand, which recorded a net outflow of $ 167.5 million


. MIDF said foreign participation was restored last week while the Daily Average Daily Value of Foreign Trade (TVAD) rose 41% to reach RM1.33bil, which is a good level.


Participation in the retail market and local institutional funds also grew, with their ADTVs increasing respectively above RM1bil and RM2bil.


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