Foreign investors bought RM110.3 million on Bursa
KUCHING: Foreign funds increased their exposure on Bursa Malaysia prior to the Chinese New Year holidays by purchasing a net amount of RM110.3 million worth of shares last week.
The research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) in a report yesterday said based on preliminary data, the net amount of equity bought by foreign investors during the four and a half trading days last week amounted to RM110.3 million.
The research firm observed that the amount has offsetted a significant portion of an outflow of RM143 million recorded in the prior week ended January 20.
MIDF Research said, “Foreign trading was active on last Tuesday (January 24), as trading value exceeded RM1 billion for the first time this year.
“But the momentum was lost as expected as the market edged towards Friday -- the eve of Chinese New Year.
“The heaviest foreign buying was recorded on Thursday (January 26), as net purchases surged to RM173 million, the second highest this year.
“It coincided with heavy buying in some regional markets notably, South Korea and Thailand.
“Of significance for the local market is that the foreign participation rate held up pretty well,” the research firm noted.
On another note, MIDF Research added the average daily trade value (ADTV) declined by only
Foreign trading was active on last Tuesday (January 24), as trading value exceeded RM1 billion for the first time this year.
two to three per cent, which was commendable as Bursa opened for trading only in the first half of January 27, which was the eve of the Chinese New Year.
The research firm opined that retail investors have retreated significantly from the market which was within expectations, selling out RM142.5 million worth of shares, the highest weekly outflow since September last year.
MIDF Research noted that participation rate based on ADTV fell by 26 per cent to RM412 million.
MIDF Research