Strong flow despite tough week for currencies
KUCHING: Foreign investors maintained their conviction in local equities despite a challenging week for emerging market currencies and uncertainty ahead of the French election.
After an influx of foreign liquidity the week before, the flow of funds from abroad into stocks listed on Bursa Malaysia eased to RM576.5 million excluding off market transactions last week.
MIDF Amanah Investment Bank Bhd ( MIDF Research) observed that net foreign buying has now extended to 13 consecutive weeks. This is longer than the 10-week inflow into Indonesia which the only other Asian emerging market currently attracting sustained foreign interest.
“It was again another four- day trading week -- buying intensity was generally low to moderate and did not exceed RM300 million,” it said. “We note that foreign investors remained net buyers on Thursday although the KLCI declined by 0.78 per cent -- the second biggest daily drop this year.
“Foreign participation on Bursa remained at an elevated level. Foreign average daily trade value (ADTV) remained above RM1 billion at RM1.02 billion, albeit lower than that the week before.”
The retail market remained healthy, the analysts said, as retail participation recovered further as the ADTV increased by 16 per cent to RM1.29 billion, the second highest this year.
Moreover, the 10-week selling streak by retailers came to a halt after retailers purchased RM20.1 million worth of local equities. On Tuesday, the traded value hit RM1.44 billion, the highest this year.
Genting Malaysia Bhd’s stocks were the beneficiary of the highest net money inflow of RM16.51 million last week. The second highest net money inflow was into UMW Holdings Bhd amounted to RM10.62 million.
Bintulu Port Holdings Bhd saw the third highest net money inflow of RM6.09 million.
Malayan Banking Bhd saw the largest net money outflow of RM28.68 million last week. AirAsia Bhd recorded the second largest net money outflow RM20.11 million during the week under review. Petronas Chemicals Group Bhd registered the third largest net money outflow at RM13.87 million.