[ad_1]
KUALA LUMPUR: Foreign local stock sales in Bursa Malaysia from Monday to Thursday remained modest at RM 86.0 million net compared to RM 27.8 million for the entire previous week.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said this brings Malaysia’s year-to-date net foreign outflow to RM22.42 billion.
In terms of participation, it found that the average daily traded value (ADTV) on a four-day basis (Monday to Thursday) of foreign investors in Bursa Malaysia remained commendable at RM 1.4 billion.
“It is worth noting that the ADTV of foreign investors has remained above the RM1.0 billion mark for the past 16 consecutive weeks.
“This indicates that international investors are still actively trading in Bursa Malaysia despite lingering political unrest,” he told Bernama.
For the trading week (Oct 12-15), he said foreign investors were trading cautiously, with an overall mixed tone. Foreign investors became net buyers on Monday and Tuesday and net sellers on Wednesday and Thursday.
Adam said Bursa Malaysia started the week on the right foot on Monday, as international investors raised RM39.0 million net of local shares, but the local stock market fell 11.9 percent amid profit-taking ahead of the hearing of opposition leader Datuk Seri Anwar Ibrahim. with the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah on Tuesday.
“Another factor that contributed to the local market decline was the announcement of the Conditional Movement Control Order (CMCO) for Selangor, Putrajaya, Kuala Lumpur and Sabah by the government on Monday to curb COVID-19,” he noted.
He said international funds were still net buyers on Tuesday, albeit at a slower pace of RM10.0 million net.
The political nervousness amid the outcome of Anwar’s hearing with the Yang di-Pertuan Agong was partially offset by the news that China has pledged to buy 1.7 million tonnes of palm oil from Malaysia through 2021, Adam said.
“Therefore, most of the plantation accountants like IOI Corporation and Kuala Kepong ended up in the green zone on Tuesday,” he added.
He said offshore investors took a break from acquiring Malaysia shares and instead sold 87.0 million net worth of shares on Wednesday, breaking the four-day buying spree, with much of the negativity coming from the stalemate in US stimulus talks.
He said net overseas sales slowed to RM48.0 million on Thursday and sentiment towards glove makers soured following the US Labor Department’s move.
“Additionally, tensions between the US and China escalated further as US President Donald Trump was considering listing China’s Ant Group on a trade blacklist before the company planned to go double-listing. in Shanghai and Hong Kong, “he added. – Bernama
[ad_2]
