Foreign funds turned net sellers in week ended Jan 20

PETALING JAYA: Foreign funds turned net sellers in the third week of 2017 after two weeks of buying, but the amount sold was relatively marginal, according to MIDF Research.
After a promising fortnight, foreign investors consolidated their position last week.
The net amount sold by foreigners on Bursa was only RM143 million, compared with the RM485 million inflow the fortnight prior.
For the year until last Friday, foreign flow remained in the surplus at RM341.6 million. Foreign investors were net buyers on Wednesday and Thursday.
However, foreign investors reverted to selling, albeit marginally, on US President Trump’s inauguration day last Friday.
MIDF Research noted that last week’s flow of fund data in the local equity market reflect regional trend as global investors withdrew from the market amid the change of guards in Washington.
“It remains to be seen whether foreigners will be back in the market this week,” it said, noting that foreign participation fell 16% last week as the average daily trade value (ADTV) amounted to only RM709.7 million.
Retailers also retreated from the market, with participation rate, based on the ADTV, falling 21% to RM555.5 million.
Based on the trend in money flow, MIDF Research expects the market to perform better post-Chinese New Year.