Foreign buying momentum continues for fourth consecutive week

KUALA LUMPUR: Foreign buying momentum continued for the fourth consecutive week on Bursa Malaysia, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed in its latest fund flow report.

However, MIDF Research noted that the level seems to be gradually decreasing.

According to MIDF Research, based on preliminary data from Bursa which excluded off market deals, international investors acquired RM702.2 million net of local equities last week, lower than the RM772.2 million net bought in the week before.

“Last week, foreign investors were net buyers on all five trading days,” the research arm said.

“Foreign buying peaked on Tuesday as foreign investors pumped in RM227.2 million net of funds, tracking gains from Asian markets such as the KOSPI which gained 0.72 per cent and attracted the highest amount of funds during the week at US$307.4 million net.”

The research arm added that oil prices stood firm at US$69.15 per barrel despite retreating from its December 2014 high of US$70.26 per barrel.

MIDF Research has however noted that on Wednesday, there was a big dip in buying activity as the net inflow retreated to RM37.5 million net, the lowest in a day since December 26, 2017.

The research arm also noted that on this day, Malaysia bucked the trend as other regional peers, namely Taiwan, Thailand and the Philippines experienced an increase in foreign inflows.

“Nonetheless, foreign buying regained its momentum on the next two days, hovering above the RM100 million mark,” it said.

“The highlight was on Friday, when fears of a US government shutdown were looming, but foreign investors still bought RM111.3 million net on that day which coincided with the Bursa’s highest daily gain in nine days of 0.4 per cent combined with the ringgit hitting the strongest since May 2016 as markets priced in a probability of a rate hike by the Monetary Policy Committee this week.”

As for foreign participation, MIDF Research noted that it remained active as the foreign average daily trade value (ADTV) stood above the RM1 billion mark for the third week running despite a 20 per cent weekly decline.

“The retail ADTV also remained elevated at RM1.76 billion, marking the fourth week above the RM1 billion level.”

Tenaga Nasional Bhd again registered the highest net money inflow of RM13.35 million last week while Felda Global Ventures Bhd recorded the second highest net money inflow of RM5.39 million.

Alliance Bank Malaysia Bhd saw the third highest net money inflow of RM4.96 million.

Meanwhile, Petronas Chemicals saw the largest net money outflow of RM28.57 million last week.

Petronas Dagangan recorded the second largest net money outflow of RM23.34 million during the week under review while Nestle (Malaysia) Bhd registered the third largest net money outflow at RM10.09 million.