Global funds continue to increase holdings in Bursa
KUALA LUMPUR: Global investors continue to increase their holdings in stocks on Bursa Malaysia Bhd (Bursa Malaysia) for the third week continuously.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a fund flow report yesterday, preliminary data from Bursa which excluded off market deals, international investors acquired RM772.2 million net of local equities last week, lower than the RM915.5 million net mopped up in the preceding week.
“Last week, foreign investors were net buyers on four out of five trading days,” the research arm said.
“Foreign investors heavily entered into Bursa Malaysia on Monday with a net buying totalling RM369.2 million, the highest acquisition in a day since April 28, 2017.”
The research arm ascribed the intense foreign buying on Monday to the strengthening of the ringgit to a 16-month high of RM3.9975 per US dollar and firmer oil prices.
“Thereafter, the foreign inflows began to gradually taper until Wednesday where it went below RM100 million net, in tandem with the decline of the FBM KLCI from 1,832 points on Monday to 1,823 points on Wednesday.
“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 US treasury yields.”
That said, MIDF Research noted that 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.
The research arm noted that sentiment on Bursa improved as Malaysia’s industrial productin index (IPI) grew by five per cent year on year (y-o-y) in November 2017.
It further noted that looking at stocks, shares of Kuchai Development Bhd soared by 30 per cent to an 11-year high of RM2.28 per share after news reporting that the company may be the biggest beneficiary from the listing of Great Eastern’s insurance arm in Malaysia.
As for foreign participation, MIDF Research pointed out that it remained vibrant as the foreign average daily trade value (ADTV) stood above the RM1 billion mark at RM1.38 billion.
“The retail ADTV was also impressive, reaching RM2.13 billion last week, a level not seen since February 2012,” the research arm said.
Tenaga Nasional Bhd registered the highest net money inflow of RM23.42 million last week while Sime Darby Bhd recorded the second highest net money inflow of RM10.64 million.
Nestle (Malaysia) Bhd saw the third highest net money inflow of RM5.29 million. Meanwhile, Public Bank Bhd had the largest net money outflow of RM28.83 million last week.
Malayan Banking Bhd again recorded the second largest net money outflow RM25.73 million during the week under review while Petronas Chemicals Group Bhd registered the third largest net money outflow at RM20.72 million.