INCREASED FOREIGN HOLDINGS IN BURSA LAST WEEK

KUALA LUMPUR: Global funds increased their stockholdings on Bursa Malaysia for the third week, with RM772.2 million inflows recorded last week, said MIDF Research.

Foreign investors entered Bursa Malaysia last Monday with net buying totalling RM369.2 million, the highest acquisition in a single day since April 28 last year, it said.

“We ascribe the intense foreign buying on Monday to the strengthening of the ringgit to a 16-month high of RM3.9975 and firmer oil prices,” said MIDF Research in its weekly fund-flow report yesterday.

Foreign inflows began to gradually taper until last Wednesday, where it went below RM100 million net, in tandem with the decline of the FTSE Bursa Malaysia KLCI (FBM KLCI) to 1,823 points on Wednesday from 1,832 points on Monday.

Foreign investors then turned net sellers on a marginal scale on Thursday as they sold off RM16.8 million net, snapping the buying streak of 12 trading days.

“Risk on mood was hampered on Thursday following the losses suffered by Wall Street on Wednesday, due to concerns over the rapid rise in the United States treasury yields,” it said.

Nonetheless, MIDF Research said foreign buying regained its momentum on Friday with a net inflow of RM182.3 million, which coincided with the 0.32 per cent gain in the FBM KLCI.

Further, sentiment on Bursa Malaysia improved as Malaysia’s industrial production index grew by five per cent year-on-year in November last year.

Shares of Kuchai Development Bhd soared 30 per cent to an 11year high of RM2.28 per share after news that the company might be the biggest beneficiary from the listing of Great Eastern’s insurance arm in Malaysia.

MIDF Research said foreign participation remained vibrant as the foreign average daily trade value stood at RM1.38 billion.

The retail ADTV was also impressive, reaching RM2.13 billion last week, a level not seen since February 2012, it said.

Tenaga Nasional Bhd registered the highest net money inflow of RM23.42 million last week, followed by Sime Darby Bhd (RM10.64 million).

PIC BY HAFIZ SOHAIMI The intense foreign buying on Bursa Malaysia last Monday was due to the strengthening of the ringgit to a 16-month high and firmer oil prices, says MIDF Research.