MIDF: INFLOWS CONTINUE FOR THIRD CONSECUTIVE WEEK

KUALA LUMPUR: Foreign tide into Bursa Malaysia continued for the third uninterrupted week, albeit at a slightly slower pace, said MIDF Research.

Malaysia was the only beneficiary of foreign inflows among the seven Asian exchanges last week, said the research firm.

Based on Bursa’s preliminary data, excluding offmarket deals, MIDF Research said the net amount acquired by foreign investors last week was RM160.9 million net, lower than RM190.9 million bought in the preceding week.

“Foreign investors were net buyers on Monday and Tuesday. The net inflow on Monday was marginal at only RM29.9 million, but foreign buying later spiked to RM206.6 million net on Tuesday,” it said in a note.

MIDF Research said the heavy foreign buying was in tandem with the rally in banking stocks, which helped push the benchmark FTSE Bursa Malaysia KLCI to settle at 1,871 points, the highest closing since 2014.

However, foreigners reduced their exposure in local stocks on Wednesday, disposing of RM26.1 million net after United States Federal Reserve new chair Jerome Powell’s testimony revived fears on more rate hikes this year, it added.

“The spike in foreign selling on Tuesday was in conformity with other Southeast Asian peers, namely Thailand, Indonesia and the Philippines.

“The situation of global markets did not turn any better on Friday amid the United States President Donald Trump’s protectionism woes, which compounded concerns over a more hawkish Fed and the timing of the ending for Japan’s monetary stimulus.

“Hence, foreign investors continued to sell stocks on Bursa on Friday to a tune of US$25.3 million (RM98.67 million) net.”

Last month recorded an outflow of RM1.12 billion net, the first monthly outflow since November last year.

Meanwhile, on a year-to-date basis, Malaysia has attracted RM2.21 billion worth of foreign funds, compared with RM1.57 billion in the same period last year.

The foreign average daily trade value (ADTV) stood above the RM1 billion mark for the ninth straight week at RM1.51 billion, resembling active foreign participation.

The retail market remained vibrant with an weekly ADTV of RM1.18 billion.

Foreign investors were net buyers on Monday and Tuesday. The net inflow on Monday was marginal at only RM29.9 million, but foreign buying later spiked to RM206.6 million net on Tuesday. MIDF RESEARCH