Bursa Malaysia sees strong­est for­eign in­flow in 10 weeks

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: For­eign in­vestors re­turned to Bursa Malaysia with the strong­est in­flow in 10 weeks as they bought RM733.4 mil­lion last week, af­ter of­fload­ing RM565.9 mil­lion the week prior amid a three-day trad­ing week.

MIDF Re­search said for­eign­ers’ par­tic­i­pa­tion rate re­mained rel­a­tively strong last week at RM921.36 mil­lion, al­beit lower than the RM1.21 bil­lion recorded the week be­fore.

They were net buy­ers in the last five trad­ing days of the week af­ter four days of net sell­ing prior due to the short trad­ing week. They bought RM16.3 mil­lion on Mon­day, RM34.7 mil­lion on Tues­day, RM45.2 mil­lion on Wed­nes­day, RM49.6 mil­lion on Thurs­day and RM31.9 mil­lion on Fri­day.

“The in­creased buy­ing on Thurs­day was mainly at­trib­uted to strong CPO price, which hit RM2,909 per tonne – the high­est in four years. That ben­e­fits listed plan­ta­tion com­pa­nies with up­stream op­er­a­tions the most. Ring­git was also the strong­est in the week on Thurs­day at USD/RM4.11,” MIDF said in its fund flow re­port yes­ter­day.

Year-to-date cu­mu­la­tive net for­eign in­flow was the high­est in 18 weeks at RM2.54 bil­lion com­pared with RM1.81 bil­lion a week ago. In ret­ro­spect, for­eign­ers had off­loaded RM19.5 bil­lion in 2015 and RM6.9 bil­lion in 2014.

Par­tic­i­pa­tion rate from both lo­cal funds and re­tail­ers im­proved to RM2.14 bil­lion (from RM2.03 bil­lion the week be­fore) and RM624.6 mil­lion (from RM518.9 mil­lion) re­spec­tively.

Lo­cal in­sti­tu­tions turned net sell­ers dur­ing the week, of­fload­ing RM738.7 mil­lion. On a weekly ba­sis, they were net buy­ers for three suc­ces­sive weeks be­fore last week. The sell­ing by lo­cal funds last week was the heav­i­est since April.

Re­tail­ers be­came net buy­ers two weeks in a row as they bought RM5.3 mil­lion last week and RM80.9 mil­lion the week prior. They bought RM1.56 bil­lion last week, the high­est in four weeks.

On the flip­side, the sell­ing last week was the high­est in five weeks at RM1.56 bil­lion. Re­tail­ers were net buy­ers ahead of the US Fed meet­ing and took prof­its on Thurs­day and Fri­day.

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