3 Signs That Foreign Fund Are Selling

KLCI has been relatively weak this week and likely to go down also today.
Keep it short and simple... let's look at 3 signs that foreign funds are selling:

1. Exceptionally huge sell volume at the morning market in the big caps
    CIMB - 9:00:09am - SELL 320800 shares at RM8.59 in a deal worth around RM2.756m
    PCHEM - 9:00:02am - SELL 666800 shares at RM6.30 in a deal worth around RM4.2m
    MAYBANK - 9:00:02am - SELL 157500 shares at RM8.88 in a deal worth around RM1.4m
 
The huge volume and value of transaction suggested that these are big players. And the urgency in their trade to sell at market price suggest they are foreign funds.


2. Weaker RM against USD and Euro
On 17-Jan (Monday) the exchange rate was RM3.0585 per USD and RM4.0597 per Euro
As of time of writing, the rate is RM3.0633 per USD and RM4.1250 per Euro

In short, RM has been weaker against USD and Euro since early this week, indicating foreign fund from US and Euro may have sell off their position and exchange RM into their home currency... causing weakness in RM.

3. Regional South East Asia index are facing pressure as well
Indonesia: Last Friday close at 3569.14... as of writing time = 3454.12 (down 3.25% so far)
Philippine: Last Friday close at 4132.04... as of writing time = 4006.24 (down 3.04% so far)

Normally, global fund managers like to invest based on themes, e.g. growth in emerging market such as South East Asia... The similar downtrend across South East Asia suggested that foreign funds are trimming their positions on South East Asia... meaning Malaysia is part of their selling as well...

So what to do?
If you are active investors, short market by selling some shares that you own, hoping to buy back at cheaper position after Chinese New Year.
If you are passive investors, then do nothing, wait for better value to buy after Chinese New Year.