Foreigners continue buying streak on Bursa to 16 weeks
KUCHING: Concerns that inflow of foreign funds into local equity is dissipating should be neutralized as foreign investors continued to plough money into Bursa Malaysia last week.
Foreigners acquired RM223.7 million net in the open market excluding off market deals last week, exceeding the RM192.4 million accumulated the week before.
Although the amount was modest, the research team behind MIDF Amanah Investment Bank Bhd ( MIDF Research) said the foreign buying streak has now stretched to 16 straight weeks.
“With three trading days left in May, foreign investors have mopped up RM1.57 billion for the month, lifting the cumulative year-to- date number to just shy of RM10 billion,” the firm said in its MIDF Equity Strategy report yesterday.
It added that in May 2016, there was a massive outflow of RM4.27 billion.
“There was a bit of unease as foreign investors turned net sellers on Monday and Wednesday. However, the amount was marginal, and by Friday, foreign investors re- emerged strongly, buying at the highest pace in 11 days.
“This coincided with the ringgit appreciating to the highest level since November 9, which lifted sentiment that was earlier compromised by the slump in crude oil price.”
Foreign participation remained healthy, MIDF Research said, with foreign average daily trade value (ADTV) staying above the RM1 billion mark at RM1.06 billion although it declined by 16 per cent week- on-week.
Likewise, the retail market remained vibrant as the ADTV stayed above RM1 billion for the fifth week in a row at RM1.27 billion. Indeed, the RM1 billion mark had been surpassed in 11 out of the last 12 weeks. Retail investors bought moderately for the second week running.
Looking at top money net inflows, Malayan Banking Bhd ( Maybank) stocks were again the beneficiary of the highest net money inflow of RM79.39 million last week.
This came after the bank announced its 1Q2017 results which saw a 19 per cent increase in profi t on the back of improved net interest margin and reduction for allowances for loan impairments.
The second highest net money infl ow was into Sime Darby which amounted to RM12.75 million. Genting Malaysia saw the third highest net money inflow of RM10.19 million.
On the top net money outflows, Malaysia Airport Holdings Bhd ( MAHB) saw the largest net money outfl ow of RM15.51 million last week, followed by KL Kepong Bhd recorded the second largest net money outflow RM6.95 million during the week under review.
The company announced its 2Q2017 results which saw plantation profits that improved on strong CPO and palm kernel selling prices.
Meanwhile, Dialog Group registered the third largest net money outflow at RM6.76 million.