Bomb fright sees funds flight at Bursa

MIDFPETALING JAYA: The bomb hoax at the Bursa Malaysia building last Friday may have been the reason behind the highest one-day selldown of shares by foreign investors since June.

According to the weekly Fund Flow Report released by MIDF Amanah Investment Bank’s (MIDF) Research unit yesterday, the foreign outflow of funds on Friday alone hit RM266.2 million.

The amount was seen as an unusual downturn against the foreign investors being net buyers just the day before, following Opec’s decision to cut output, and the anticipation of higher oil prices, which is good for Malaysia and especially, Petronas.

Last Thursday, foreign investors made an impact on Bursa with a net buy of RM107.6 million, according to the report by MIDF Head of Research Zulkifli Hamzah.

As a result of Friday’s selldown, the overall week’s trade by foreign investors showed a net outflow of RM240.8 million. This was in stark contrast to the RM733.4 million foreign inflow the week before.

Last Friday, the Bursa Malaysia building, at Bukit Kewangan in Kuala Lumpur, was evacuated after a bomb threat was called in at 12.01pm.

The police bomb disposal unit later declared the Bursa Malaysia building safe and no suspicious object had been found.

All Bursa staff and employees of other organisations housed in the same building were allowed back in about three hours after the threat was received.