FOREIGN BUYERS INCREASE EXPOSURE TO LOCAL STOCKS
Investors acquire net RM4.5m as Chinese New Year holiday shortens trading week
FOREIGN investors increased their exposure to stocks listed on Bursa Malaysia ahead of the Chinese New Year holiday break, after a huge sell-off in the preceding week.
Based on preliminary data from Bursa Malaysia, excluding off-market deals, the net amount acquired by foreign investors during the 3.5 trading days last week amounted to RM4.5 million, the smallest amount bought in a week thus far this year, said MIDF Research.
Foreign funds were net buyers on all trading days except Monday, which saw an attrition of RM230.3 million net.
It said foreign buying was the highest on Tuesday at RM112.7 million net, with trading value exceeding RM1.5 billion, the highest in four trading days.
On Wednesday, the FTSE Bursa Malaysia KLCI closed at a fourday trading high of 1,835 points, following the announcement that Malaysia’s gross domestic product (GDP) expanded 5.9 per cent year-on-year last year, compared with a 4.2 per cent expansion in 2016.
Nonetheless, foreign buying only stood at RM62.4 million net, the second lowest in the week as foreigners remained anxious ahead of the United States inflation data.
The FBM KLCI inched higher to 1,838 points on Thursday as investors shrugged off strong US inflation data, but foreign buying declined further to RM59.7 million net as foreign investors entered risk-off mode right before the Chinese New Year holiday.
Overall, Malaysia bucked the trend with an inflow as the Philippines, Thailand and Indonesia all experienced attrition.
Foreigners have so far acquired RM1.86 billion net in the first seven weeks of this year, higher than the RM1.11 billion recorded in the same period last year.
“Although the foreign average daily trading value declined 35 per cent to RM1.04 billion last week from RM1.61 billion in the week before, we deem the foreign participation to be still healthy, given that last week was a short trading week and Thursday was a half trading day,” it said.
Tenaga Nasional Bhd registered the highest net money inflow with RM46.05 million last week, followed by Malaysia Airports Holdings Bhd at RM27.34 million.