Slower pace of inflows to Bursa last week

KOTA KINABALU: Foreign inflows into stocks listed on Bursa took a breather last week but marked its fourth week of inflows, the longest streak since the week ended December 29, 2017 to February 2, 2018.

This comes as in emerging South East Asian markets, majority of markets experienced attrition with Indonesia taking the lead.

Based on preliminary data from Bursa which excluded off market deals, MIDF Amanah Investment Bank Bhd (MIDF Research) saw that the net amount acquired by foreign investors last week amounted to RM24.6 million net, the second lowest weekly inflow so far this year.

“It was a modest start to the week as foreign investors bought RM35.9 million net of local equities on Monday. However, panic conquered markets on Tuesday fueled by worries of increasing US Treasury yields could prompt more outflows from emerging markets,” it said in a note.

“As a consequence, global funds withdrew RM191.4 million net of equities on Tuesday, the highest since March 28. The FBM KLCI followed suit to decline the most in two weeks by 0.80 per cent on the same day.

“Although concerns on rising US Treasury yields continue to linger, attrition on Bursa gradually receded thereafter until RM9.20 million net on Thursday, buoyed by stable crude oil prices.”

Global investors returned strongly to Malaysia on Friday, MIDF Research added, snapping up RM277.3 million net while the FBM KLCI was back above 1,860 points after two days remaining below that level.

“Among the 4 Asean exchanges we track, Malaysia was the only beneficiary of inflows that day,” it sdded. “We opine that investors took cue from the positive vibes of the meeting between the two Koreas which also attracted the comeback of foreign funds into North Asia,namely South Korea and Taiwan.

“With only one-trading day left, April is set to be the first month of inflows since January 2018 as the month-to-date figure shows an inflow of RM1.26 billion net. This brings the year-to-date inflow RM3.46 million net.”

Foreign participation remained robust as the average daily trade value (ADTV) stood above the RM1 billion level for the 16th week this year. The retail market, meanwhile, took a hit as its ADTV reached the lowest in 10 weeks at RM772.8 million.

Looking ar the top net money inflow, Genting Malaysia Bhd led the pack with RM27.42 million last week as Tenaga Nasional Bhd recorded the second highest net money inflow of RM9.55 million and British American Tobacco Bhd came in third with RM9.48 million.