Momentum rises for foreign inflow to Bursa Malaysia
KUCHING: The momentum of foreign tide into Bursa Malaysia accelerated last week as net amount purchased by foreign investors more than doubled to RM728.1 million from RM301.8 million seen the week before.
Researchers with MIDF Amanah Investment Bank Bhd ( MIDF Research) said this marks the sixth consecutive week of foreign net buying. The estimates, it added, are based on transactions in the open market which excluded offmarket deals.
“Foreigners were net buyers on every single day last week,” it observed in a research note yesterday.
“As of last Friday, they have been net buying in nine out of 11 straight days.
“We note that the buying momentum from the preceding week was carried forward as Bursa commenced on Monday, with foreign investors on net loaded up RM206.2 million.”
MIDF Research detailled that foreigners continued to buy on Tuesday at RM163.9 million net. Buying momentum persisted into Wednesday and Thursday at a decelerating pace of RM125.3 million and RM86.2 million net, respectively.
The buying pace, however, improved on Friday at RM146.5 million net as sentiments were arguably lifted by the strongerthanexpected June industrial production data, as well as the second quarter gross domestic product (GDP) growth rate which
Foreigners were net buyers on every single day last week.
delivered market expectations at four per cent year- on-year.
“The cumulative net foreign inflow thus far this year into shares listed on Bursa is approaching the RM2 billion level,” it highlighted, noting that as of last Friday, the year-to- date cumulative flow into the bourse increased to an estimated RM1.989 billion from RM1.261 billion the week prior.
“In retrospect, foreigners had offloaded RM19.5 billion and RM6.9 billion in 2015 and 2014 respectively.
“Meanwhile, foreign participation rate continued to demonstrate a sign of fatigue. It remained subdued at RM765.9 million, little changed from previous week’s RM761.2 million. The rate has been staying below the RM1 billion level for the ninth time in the past 10 straight weeks.
“Local institution continued to sell for the 6th successive week by offloading RM646.3 million. Meanwhile, its participation rate remained decent at RM2.18 billion, down marginally from prior week’s RM2.21 billion.
“Retail buyers turned net sellers last week. They trimmed down their holding by RM81.8 million, after a net purchase of RM33.1 million in the preceding week. Meanwhile, their participation rate has improved further to RM659 million from RM605.5 million the week prior.”
MIDF Research