Foreign purchases slow but steady on Bursa

KUCHING: The tapering of foreign purchases on Bursa continued at a measured pace last week.

MIDF Amanah Investment Sdn Bhd (MIDF Research) observed that foreigners took their foot off the pedal as the amount purchased in the open market – excluding off market deals – declined significantly to RM239.9 million net, compared to RM645.3 million the week before. Nevertheless, this surplus meant that foreign investors have now been net buyers on Bursa for the 10th consecutive week.

“On a positive note, foreign investors were net buyers every single day last week,” MIDF observed in a ntoe yesterday.

“The buying was nevertheless lacklustre, refl ecting non-committal fervour among theinvestors. It is to be expected as the global equity market is currently in a consolidation mode, and trading had been disrupted by closures in a few markets.”

The silver lining is that the local market has been spared of an abrupt and destabilising withdrawal, it said.

Year- to- date, the cumulative foreign purchases amounted to RM6.63 billion. While this is sizeable, MIDF Research said it was still only about half compared to the same trading period in 2013, which was the last General Election year.

“Foreign participation on Bursa in general eased last week. Foreign average daily trade value (ADTV) was lower by 32 per cent at RM740.6 million – the first time it declined below the RM1 billion level in four weeks. On Friday, foreign participation plunged to only RM235.4 million.

“Retail market remained vibrant despite the ADTV declining by 20.4 per cent to RM1.11 billion. It was the sixth straight week that the ADTV exceeded RM1 billion. “Indeed, the daily participation for the retail market exceeded RM1 billion every day of the week.”

Looking at top performers, KL Kepong Bhd registered the highest net money inflow of RM14.32 million last week. Its share price declined by 3.48 per cent, underperforming against the FBM KLCI which decreased by 0.62 per cent during the week under review.

Nestle Malaysia Bhd recorded the second highest net money inflow of RM7.26 million. During the week, the company announced that it has invested over RM1 million on its ‘Wellness TogetherGather’ e- commerce campaign.

UMW Holdings saw the third highest net money infl ow of RM5.18 million.

Meanwhile, Malaysia Airport Holdings Bhd saw the largest net money outflow of RM22.56 million last week. Tenaga Nasional Bhd recorded the second largest net money outflow RM15.11 million during the week under review.

The company announced that the sale of 1Malaysia Development Bhd (1MDB) energy assets for RM10.2 billion cash to China General Nuclear Power Corp (CGN) and its subsidiaries included development rights, that broke away from industrial practice.

British American Tobacco registered the third largest net money outfl ow at RM11.99 million in the week under review.