At 12 weeks, in­flux of liq­uid­ity by overseas in­vestors at long­est streak since May 2013

New Straits Times - - Business -


THERE was an in­flux of for­eign liq­uid­ity into Bursa Malaysia last week, de­spite it be­ing a four-day trad­ing week. It stretched net for­eign buy­ing to 12 con­sec­u­tive weeks, the long­est since the 24-week streak that ended in May 2013, the month of the last gen­eral elec­tion, said MIDF Re­search.

The re­search house said for­eign pur­chases of eq­uity in the open mar­ket (ex­clud­ing off-mar­ket deals) surged to RM1.45 bil­lion, the sec­ond-high­est weekly in­flux this year and five times more than the pre­vi­ous week.

“For­eign par­tic­i­pa­tion on Bursa Malaysia bounced strongly last week to an el­e­vated level.

“For­eign av­er­age daily trade value (ADTV) was up by 56 per cent to RM1.34 bil­lion. In­deed, for­eign daily trade value was above RM1 bil­lion for ev­ery sin­gle day of the week.

“Most for­eign buy­ing oc­curred last Tues­day and Fri­day, with the amounts reach­ing RM415.2 mil­lion and RM405.8 mil­lion net, re­spec­tively.

“In the first four months of this year, the in­flow has ex­ceeded RM400 mil­lion on five dif­fer­ent days. By com­par­i­son, the day-count was eight in 2013, two in 2014, one in 2015 and five last year.”

MIDF Re­search said cu­mu­la­tive for­eign net pur­chases amounted to RM2.62 bil­lion last month, which was around half the cu­mu­la­tive in­flow of RM4.7 bil­lion recorded in March.

Re­tail par­tic­i­pa­tion was also start­ing to re­cover as the ADTV in­creased by 25 per cent to RM1.1 bil­lion, said the re­search house in a note.

How­ever, retailers were still on prof­ittak­ing mode af­ter sell­ing for 10 weeks in a row, it added.

MIDF Re­search said Gent­ing Malaysia Bhd was the big­gest ben­e­fi­ciary of the net money in­flow with RM16.51 mil­lion last week.

Its share price, how­ever, fell 1.84 per cent, un­der­per­form­ing the FTSE Bursa Malaysia KLCI, which rose 0.68 per cent last week.

On this score, MIDF Re­search said the net in­flow amid de­clin­ing share prices in­di­cated a “buy on weak­ness” stance among some in­vestors.

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