Investors return to Bursa in spite of short week

KUCHING: Offshore investors slowly made a comeback to Bursa Malaysia during the three- day trading week based on preliminary data from the bourse which excluded off market deals.

International funds only snapped up RM2.6 million net of local equities last week, observed MIDF Amanah Investment Bank Bhd (MIDF Research), who noted that this was the smallest weekly foreign net inflow recorded so far this year.

“On the regional front, Malaysia bucked the trend, being the only country to attract inflows last week amongst the four Asean markets we monitor,” it said in its bourse analysis yesterday.

Foreign funds heavily withdrew from Bursa on Wednesday at minus RM349.8 million net as markets reopened after the long weekend, dragging the local bourse to 1,785 points, the lowest close in 18 trading days.

“We note that Wednesday’s selloff was in conformity with other peers as investors were jittered by China seeking permission from the World Trade Organisation to impose trade sanctions on the US.

“Nonetheless, the fiveday selling streak on Bursa was snapped on Thursday as offshore funds bought RM174.4 million net of local equities, the highest in 22 trading days amidst Washington’s plans to reignite trade negotiations with China.”

Meanwhile, foreign net buying then inched higher to RM177.7 million net on Friday as investors tracked gains from Wall Street’s tech rally overnight which pushed the S& P500 index to its fourth consecutive day of gains amidst the release of Apple’s new products.

The ringgit also appreciated by 0.15 per cent to its strongest level since September 3, 2018, which led to its first weekly gain in 12 weeks.

“As of last Friday, the yeartodate outflow from Bursa stood at minus RM9.25 billion, approximately offsetting slightly more than 90 per cent of the total foreign net infl ow seen in 2017. Notwithstanding this, Malaysia still retains its position as the nation with the second lowest foreign outflow amongst the four Asean markets we monitor.”

Despite the short week, the weekly average daily traded value (ADTV) amongst retail investors, local institutions and foreign investors increased.

MIDF Research saw that the ADTV of foreign investors rose the most during the week by 41.6 per cent to RM1.6 billion, marking its 10th consecutive week of being above RM1 billion.