International investors upped the ante on Bursa

KUCHING: International investors upped the ante in stocks listed on Bursa Malaysia despite the nerve-wrecking developments coming from the US, analysts observed in a weekly fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on preliminary data from Bursa which excluded off market deals, the net amount acquired by foreign investors last week amounted to RM447.1 million net, larger than three times the RM141.2 million net bought in the preceding week.

“In fact this is the largest weekly inflow in eight weeks,” MIDF Research said.

On foreign buying, MIDF Research highlighted that it occurred on four out of five trading days last week and peaked on Wednesday at RM159.2 million net ahead of the expected rate hike during Fed’s first meeting since Jerome Powell’s appointment.

“The buying momentum slightly eased to RM112.2 million net on Thursday after the Fed maintained its outlook for a total of three rate hikes in 2018, less hawkish than expected.

“Nonetheless, the local bourse remained steady as it closed at 1,877 points on Thursday, the highest so far this year.”

MIDF Research has however pointed out that the local bourse was jolted on Friday due to the US- China trade spat, pulling the FBM KLCI down by 0.62 per cent to 1,865 points.

The research arm noted that foreign investors were net sellers to a tune of RM30.9 million.

“It is noteworthy that the pace of foreign selling in Malaysia and its Southeast Asian peers namely Indonesia and the Philippines was very slow ranging from RM7.9 million to RM77 million net compared to North Asian markets which saw attrition levels reaching as high as RM349.7 million net.”

Overall for the week, only Malaysia and Thailand attracted net inflows in the Southeast Asian markets that the research arm tracked.

“On a year- to- date basis, foreigners have accumulated RM2.5 billion worth of local equities compared to the RM4.49 billion mopped up during the same period last year.

“Foreign participation slightly eased last week as the average daily trade value (ADTV) retreated 33 per cent to RM1.09 billion but marked its 12th week of staying above RM1 billion.

“The retail market also took a breather as the retail ADTV declined to settle below RM1 billion for the first time in four weeks.”