Foreign investors buying momentum remains strong last week

KUCHING: Foreign investors’ buying momentum on Bursa Malaysia (Bursa) remained strong last week with net purchases of more than RM1 billion.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report yesterday said the foreign liquidity tide on Bursa remained elevated for the second week running ended March 24.

The research firm observed that foreign investors purchased RM1.08 billion worth of shares on Bursa last week, the second week running the amount had exceeded RM1 billion adding that foreign funds had purchased RM1.76 billion in the prior week ended March 17.

With the strong buying momentum last week, the research firm noted foreign investors have been net buyers of shares on Bursa for seven consecutive weeks ended March 24.

As of Friday March 24, MIDF Research observed that foreign investor’s net buying had extended for eleven trading days.

The research firm said, “So far, the month of March has recorded a cumulative foreign net purchase of RM3.23 billion.

“With four trading days left in the month, it is already higher than RM956 million recorded in February and is the highest since March 2016.

“The strong foreign buying momentum is reflected by the fact that when equity market around the globe retraced significantly on last Wednesday, foreign investors continued to pick up Malaysian shares,” the research firm said.

MIDF Research believed the global retracement on last Wednesday was spurred by concerns arising ahead of the US Republican’s healthcare vote on last Thursday which was eventually withdrawn.

On another note, the participation rate by foreign investor remained at an elevated level.

The average daily trade value (ADTV) of foreign investor stood at RM1.26 billion last week, the second highest for this year.

MIDF Research opined that the strong foreign buying momentum continued to enable local investors in particular the institutional funds to reduce their position.

From January to March 24, the research firm noted local fund managers have disposed a net amount of shares worth RM3.86 billion.

Additionally, the research firm said the retail market remained vibrant as retail investor’s ADTV increased by 1.3 per cent to RM1.26 billion as compared to the week before.

The high participation rate by retail investors last week has marked the third week in a row the figure has exceeded RM1 billion level.