Sub­dued for­eign buy­ing on Bursa last week

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: For­eign in­vestor ac­tiv­ity on Bursa Malaysia re­mained sup­pressed last week as for­eign­ers bought a small amount of stocks val­ued at RM118.8 mil­lion af­ter of­fload­ing RM240.8 mil­lion the week be­fore.

MIDF Re­search said the trend was con­sis­tent else­where in the re­gion and in East Asia. The fig­ures are based on trans­ac­tions in the open mar­ket, and ex­clude off-mar­ket deals.

It said Bursa was closed on Mon­day for a pub­lic hol­i­day. There was healthy buy­ing ac­tiv­ity on Tues­day when the mar­ket re­opened, as for­eign­ers bought RM143 mil­lion.

“How­ever, the mo­men­tum was not sus­tained and the buy­ing ta­pered off on Wed­nes­day and Thurs­day. By Fri­day, for­eign­ers turned net sell­ers, but the amount was low,” MIDF Re­search said in its fund flow re­port yes­ter­day.

It said last week’s small for­eign buy­ing raised the cu­mu­la­tive net for­eign in­flow into shares listed on Bursa to an es­ti­mated RM2.42 bil­lion, down from a peak of RM6.47 bil­lion in April. This means that since April, for­eign in­vestors have re­deemed about RM4 bil­lion. The amount is still mod­est rel­a­tive to the RM19.5 bil­lion and RM6.9 bil­lion net out­flows in 2015 and 2014 re­spec­tively.

In­ter­est­ingly, for­eign par­tic­i­pa­tion was rather ac­tive last week, as the av­er­age daily value of shares traded broke the RM1 bil­lion mark to hit RM1.04 bil­lion.

Trad­ing was heavy mainly on Tues­day and Wed­nes­day at more than RM1.2 bil­lion each day. Nev­er­the­less, for­eign in­vestors were quiet on the last two days of the week.

Lo­cal in­sti­tu­tional in­vestors dom­i­nated mar­ket par­tic­i­pa­tion and the av­er­age daily value of shares traded stayed above RM2 bil­lion for the fourth con­sec­u­tive week at RM2.2 bil­lion.

Re­tail buy­ers re­treated from the mar­ket, of­fload­ing RM87.9 mil­lion. The re­tail av­er­age daily value of shares traded plum­meted 21% to only RM466 mil­lion, among the low­est this year.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.