The Borneo Post (Sabah)

Foreign funds slowly add holdings in stocks

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KUALA LUMPUR: Foreign funds slowly added their holdings in stocks listed on Bursa Malaysia after a week filled with major news affecting global capital markets, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed in a fund flow report.

According to MIDF Research, based on preliminar­y data from Bursa which excluded off market deals, the net amount acquired by foreign investors last week amounted to RM141.2 million net, cancelling almost half of the RM299.1 million net sold in the preceding week.

“Foreign buying peaked on Monday at RM279.3 million net, the highest net inflow in a day since January 23, 2018 which led to FBM KLCI’s biggest daily gain in 15 trading days of 0.94 per cent.

“Sentiment on that day was buoyed by receding fears over quicker US rate hikes this year amid the increase in jobs coupled with a slowdown in wage growth.

“The FBMKLCI gained 0.15 per cent to 1,864 points the next day with a smaller inflow of RM122.9 million,” the research arm said.

“However, markets on Wednesday negatively affected by President Donald Trump’s decision to oust Rex Tillerson.

“The political turmoil in the US prompted investors to shift to safe-haven assets, resulting in a daily attrition of RM11.5 million.”

MIDF Research noted that foreigners then disposed RM22 million net on Thursday amid concerns of the US-China trade spat, coinciding with the FBMKLCI’s settling at the lowest point during the week at 1,845 points.

The research arm further noted that President Trump was urging China to reduce its trade surplus with US by RM100 billion.

MIDF Research highlighte­d that foreign selling further intensifie­d on Friday as foreign funds withdrew RM227.5 million net ahead of the Fed’ monetary policy meeting this week.

“On a year-to-date basis, foreigners have accumulate­d RM2.05 billion worth of local equities,” it said.

“Meanwhile March has so far recorded a net outflow of RM207.4 million, a far cry from the RM4.37 billion net inflow in March 2017 amid the anticipati­on of the 14th General Election.”

As for foreign average daily trade value (ADTV), MIDF Research pointed out that it increased by 46 per cent to RM1.64 billion, marking its 11th week of staying above RM1 billion.

“Retail participat­ion rate remained vibrant too with its ADTV remaining above RM1 billion for the fourth consecutiv­e week.”

Tenaga Nasional Bhd recorded the highest net money inflow of RM10.41 million last week.

Hong Leong Bank Bhd recorded the second highest net money inflow of RM6.76 million while Malaysia Airports Holdings Bhd saw the third highest net money inflow of RM5.36 million.

On outflows, Public Bank Bhd saw the largest net money outflow of RM39.65 million last week.

Malayan Banking Bhd recorded the second largest net money outflow of RM39.36 million during the week under review while CIMB Group Holdings Bhd registered the third largest net money outflow at RM24.06 million.

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