KUALA LUMPUR (Oct 13): Selling of Malaysian equities by foreign investors fell 39.5% to RM84 million on Oct 12, from RM139 million on Oct 11.

Foreign participation dipped to 28% in Oct 12 from 31.1% the day before, according to updates by Bursa Malaysia.

Meanwhile, local institutions and retailers were net buyers. Local institutions recorded a net sale value of RM38 million and their participation stood at 48.7%, while retailers recorded a net sale value of RM46 million and participation of 23.3%.

The slower foreign selloff comes as the FBM KLCI registered its fourth straight day of losses; the index closed 6.3 points lower to 1,380.6 points amid turbulence on Wall Street and regional markets that was compounded by GE15 uncertainties.

"Tracking a prolonged consolidation on Wall St and higher market risk premium perceived for Malaysia following the dissolution of Parliament, KLCI is likely to extend trading with downward bias (resistance: 1,404-1,430-1,454 points; supports: 1,334-1,348-1,363 points), driven by (i) global recession fears, (ii) elevated inflation, (iii) heightened geopolitical tensions, (iv) potential downgrades in Malaysian corporate earnings and GDP, along with (v) resumption of foreign net selling," said Hong Leong Investment Bank in a note.

"We continue to advocate investors to seek refuge in banks, telcos, utilities, consumer, healthcare, autos and construction stocks as we believe the new government after GE15 will continue to be highly supportive of domestic consumption," it added.