Foreigners increase holdings in Bursa for third week in a row

PETALING JAYA: Global funds continued to increase their holdings in stocks listed on Bursa Malaysia for the third uninterrupted week, mopping up RM772.2 million net equities, which excluded off-market deals.

This was lower than the RM915.5 million taken up in the preceding week.

Foreign participation remained vibrant as the foreign average daily trade value (ADTV) stood above the RM1 billion mark at RM1.38 billion. The retail ADTV was also impressive, reaching RM2.13 billion last week, a level not seen since February 2012.

Last week, foreign investors were net buyers on four out of five trading days. Foreign investors heavily entered into Bursa on Monday with a net buying totalling RM369.2 million, the highest acquisition in a day since April 28, 2017.

“We ascribe the intense foreign buying on Monday to the strengthening of the ringgit to a 16-month high of USD/MYR3.9975 and firmer oil prices,” MIDF Research said in its weekly report.

Thereafter, the foreign inflows began to gradually taper until Wednesday when it went below RM100 million net, in tandem with a decline in the FBM KLCI from 1,832 points on Monday to 1,823 points on Wednesday.

Nonetheless, foreign buying regained its momentum on Friday with a net inflow of RM182.3 million which coincided with a 0.32% gain in the FBM KLCI.