MIDF: Foreign buying momentum continues

KUALA LUMPUR: Foreign buying momentum continued for the fourth consecutive week on Bursa Malaysia, although the level was gradually decreasing, said MIDF Research.

It said foreign investors were net buyers on all trading days last week and it peaked on Tuesday, when they pumped in RM227.2 million net funds, tracking gains from Asian markets.

“However, on Wednesday, there was a big dip in buying activity as the net retreated to RM37.5 million, the lowest in a day since December 26,” said MIDF Research in its weekly fund flow report.

Malaysia also bucked the trend on Wednesday as regional peers, namely Taiwan, Thailand and the Philippines, experienced an increase in foreign inflows.

Nonetheless, foreign buying regained its momentum over the next two days, hovering above the RM100 million mark.

“The highlight was on Friday, when fears of a United States government shutdown were looming. Foreign investors bought RM111.3 million net on that day, which coincided with Bursa’s highest daily gain in nine days of 0.4 per cent, combined with the ringgit hitting the strongest since May 2016 as markets priced in a probability of a rate hike by the Monetary Policy Committee this week,” he added.

Tenaga Nasional Bhd registered the highest net money inflow of RM13.35 million last week, followed by Felda Global Ventures Bhd with net money inflow of RM5.39 million.

Petronas Chemicals saw the largest net money outflow last week with RM28.57 million, followed by Petronas Dagangan with net money outflow RM23.34 million during the week under review.