AFFIN HWANG ‘NEUTRAL’ ON PLANTATION SECTOR

RM362.6m inflow bucks trend in Asia and in line with stronger ringgit, says MIDF

FOREIGN buying of Malaysian equities accelerated for the second consecutive week last Friday, said MIDF Research. Foreign funds mopped up RM362.6 million during the fourday trading week, 10 times more than the preceding week based on transactions in the open market, excluding off market deals.

The amount acquired by foreign funds last week was the highest in 17 weeks, said MIDF Research in its weekly fund flow report.

Bursa Malaysia was closed last Monday to mark the country’s outstanding achievements in the Southeast Asian Games 2017.

“We note that foreign funds were net buyers every single day of the week,” said the research house.

“Thursday recorded the highest inflow of RM153.1 million net, the highest in a day since July 13, coinciding with the strengthening ringgit and increasing Brent crude oil price.

“We also note that Malaysia’s inflow was in line with Thailand’s, bucking the trend in Asia which experienced an outflow.”

Last week’s foreign buying brought the cumulative year-todate net inflow to RM10.7 billion.

Foreign participation rate was strong, with average daily trade value (ADTV) surging 29 per cent to surpass the RM1 billion mark for the first time in 10 weeks.

Gross trade for the week ranged from RM936 million to RM1.5 billion.

Likewise, retail participation edged higher for the week.

The retail ADTV increased by nine per cent to RM880 million, staying above RM800 million for six weeks in a row.