Foreign investors increased exposure ahead of CNY
KUALA LUMPUR: Foreign investors increased their exposure in stocks listed on Bursa ahead of the Chinese New Year break following a huge sell off in the preceding week, analysts observed in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on preliminary data from Bursa which excluded off market deals, the net amount acquired by foreign investors during the three and a half days of trading last week amounted to RM4.5 million net -the smallest amount bought in a week thus far this year.
“Foreign funds were net buyers on all trading days except Monday which saw an attrition of RM230.3 million net,” MIDF Research said.
“Meanwhile, 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.”
MIDF Research highlighted that on Wednesday, the announcement of Malaysia’s gross domestic product (GDP) expanding by 5.9 per centyoy in 2017 compared with a 4.2 per cent expansion in 2016 saw the FBM KLCI close at a four-day trading high of 1,835 points.
It further highlighted that nonetheless, foreign buying only stood at RM62.4 million net, the second lowest during the week as foreigners remained anxious ahead of the US 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.”
Meanwhile, MIDF Research noted that foreigners have so far acquired RM1.86 billion net in the first seven weeks of 2018, higher than the RM1.11 billion recorded during the same period in 2017.
Although the foreign average daily trading value (ADTV) declined by 35 per cent from RM1.61 billion in the week before to RM1.04 billion last week, the research arm deemed the foreign participation to be still healthy given that last week was a short trading week and Thursday was a half trading day.
Tenaga Nasional Bhd registered the highest net money inflow of RM46.05 million last week while Malaysia Airports Holdings Bhd recorded the second highest net money inflow of RM27.34 million.
CIMB Group Holdings Bhd saw the third highest net money inflow of RM21.41 million. On the other hand, Public Bank Bhd saw the largest net money outflow of RM9.74 million last week.
PPB Group Bhd recorded the second largest net money outflow RM9.15 million during the week under review while SP Setia Bhd registered the third largest net money outflow at RM4.14 million.