Foreign funds’ three-week buying streak on Bursa longest since GE14

KUALA LUMPUR: Foreign funds bought equities listed on Bursa Malaysia for the third week running which analysts observed is the longest buying streak so far since the 14th General Election (GE14).

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) based on preliminary data from Bursa which excluded off market deals, international funds acquired RM212.3 million net of local equities last week, about half the net inflow in the previous two weeks.

“Malaysia was one of the two markets which attracted weekly foreign net inflow amongst the A sean markets besides Indonesia ,” MIDF Research said in its weekly round up.

“Foreign investors first bought RM199.4 million net on Tuesday followed by RM72.3 million net on Wednesday.

“A highest weekly foreign net attrition worth RM37.9 million was seen on Thursday as foreign investors reacted to the interest rate hike by the Federal Reserve.

“The same trend was seen across Asean markets namely Thailand, the Philippines and Indonesia,

Malaysia was one of the two markets which attracted weekly foreign net inflow amongst the Asean markets besides Indonesia. MIDF Research

with the highest foreign outflow of US$53.6 million recorded in Thailand.”

However, MIDF Research noted that offshore funds paced down the outflow on Friday recording only RM10.9 million net attrition.

The research arm further noted that the month of September has seen a foreign net inflow of RM66.3 million.

“Meanwhile, the year-to-date outflow from Bursa as of last Friday stood at RM8.5 billion or US$2.2 billion, which is still the second lowest foreign outflow amongst the four Asean markets we monitor.”

MIDF Research also highlighted that institutional investors were more active than the retail market and foreign institutions as its weekly average daily traded value (ADTV) was 7.3 per cent higher at RM2.2 billion.

It pointed out that the weekly ADTV of the foreign market declined by more than 10 per cent but still remained above their healthy levels of RM1 billion.

“Meanwhile in the retail market, ADTV grew 5.6 per cent to RM917.80, which is well above RM800 million.”

Overall, Public Bank Bhd registered the highest net money inflow of RM84.2 million last week, followed by Malayan Banking Bhd (Maybank) with the second highest net money inflow of RM14.9 million.

Malaysia Airports Holdings Bhd, which ended the week with its share price closed at RM8.90, had the third highest net money inflow at RM13.95 million.

On the other hand, CIMB Group Holdings Bhd recorded the highest net money outflow of RM42.5 million last week. Petronas Chemicals Group Bhd recorded the second largest money outf low of RM33.1 million during the week under review while Digi.com Bhd registered the third largest net money outflow at RM8.8 million.