Global funds make way into stocks listed on Bursa M’sia
KUCHING: After five straight weeks of net selling, international funds finally made their way into stocks listed on Bursa Malaysia, analysts observe in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), based on data from Bursa, foreign funds acquired RM86.3 million net of local equities, the second lowest weekly foreign net inflow recorded so far this year.
“Bursa started the week on a strong note as foreign investors bought RM81.5 million net, the largest in a day since February 18, 2019,” MIDF Research said.
“The influx of foreign funds on Monday lifted the FBMKLCI by 0.6 per cent to its highest close in 10 trading days at 1,691 points.
“International funds continued entering the Malaysian market to a tune of RM20.6 million net on Tuesday coinciding with Brent crude oil price consistently remaining near the US$ 67 per barrel ( pb) level following the Organization of the Petroleum Exporting Countries’ ( OPEC) commitment to resume output cuts 2019.”
That said, MIDF Research noted that global funds shifted to the sidelines on Wednesday ahead of the US Federal Reserve meeting, resulting in a foreign net outflow of RM26.6 million.
It further noted that another concern which surrounded markets on Wednesday was the possible pushback of China against US’ demands even as President Trump cited that talks are going well.
“Notwithstanding thi s , Malaysia attracted a bout of foreign net inflows worth RM14.6 million on Thursday as the Federal Reserve implied that it would halt interest-rate increases this year and pivot away from policy tightening.
“The ringgit followed suit to appreciate by 0.12 to an eightmonth high of US$-RM4.061, the strongest since late July last year.”
The research arm also highlighted that a measurable pace of foreign net selling was seen on Friday worth RM3.9 million following Malaysia’s consumer price index which contracted by 0.4 per cent year on year (y- o-y) for the second month in February 2019, continuing a deflationary trend.
“The weekly foreign net buying last week has pared the month-todate foreign net outflow in March to RM1.4 billion.
“Malaysia’s year-to- date foreign net outflow of RM1.19 billion or US$ 292.7 million is no longer the highest amongst the four Asean markets we monitor as Thailand took the spot with a year-to- date foreign net outflow of US$ 349.4 million or above RM1.4 billion.”
Overall, Malayan Banking Bhd registered the highest net money inflow of RM32.24m last week, followed by Nestle ( Malaysia) Bhd with the second highest net money inf low of RM28.84 million.
Fraser & Neave Holdings Bhd saw the third highest net money inflow of RM16.64 million.
On outflows, KL Kepong Bhd saw the largest net money outflow of RM12.53 million last week.
Top Glove Corp Bhd recorded the second largest net money outflow RM4.58 million during the week under review while Tenaga Nasional Bhd registered the third largest net money outflow of RM4.57 million.