International investors continue to amp up stakes on Bursa

KUCHING: International investors continued to buy up stocks on Bursa Malaysia last week.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), this marks four consecutive weeks of gradual foreign net inflow into Malaysia.

“Based on preliminary data from Bursa which excluded off market trades, the amount acquired by international investors inched nearer to RM500 million.

“To be exact, RM495.3 million net of Malaysian equities were acquired last week, a level not reached for the past seven months,” the research arm said.

MIDF Research highlighted that the week started and ended with a bout of attrition.

“Nonetheless, the foreign buying from Tuesday to Thursday which totalled to RM591.8m net cancelled off the -RM96.5 million net sold on Monday and Friday.

“Foreign buying peaked on Thursday at RM310.4 million net, the largest daily inflow since April 28 this year.

“The heavy foreign buying coincided with the FBM KLCI reaching the highest close since October 10 at 1,759 points.”

The research arm added that it is noteworthy that the foreign inflow was in line with other regional peers, notably South Korea, Taiwan and the Philippines amid positive developments in the US tax overhaul plan.

MIDF Research has however pointed out that Friday turned out to be a gloomy day as foreign investors disposed -RM60.7 million net.

“Investor sentiment was hampered by the lacklustre performance of Wall Street overnight amid sudden uncertainties on the US tax reform.

“Henceforth, it was no surprise that the local bourse took cue to retreat by 0.34 per cent, closing below the 1,750 level on the same day,” the research arm said.

MIDF Research noted that the fourth week of inflows has brought the year-to-date foreign purchase above the RM10 billion mark at RM10.2 billion.

The research arm further noted that the last time it breached above the RM10 billion level was during the third week of September this year.

“Foreign participation stood strong last week as the foreign average daily trade value (ADTV) stayed above RM1 billion for the third week running.

“The retail ADTV meanwhile staged a recovery, increasing by 12.3 per cent to RM904 million,” it said.

IOI Corporation Bhd registered the highest net money inflow of RM20.23 million last week, followed by Tenaga Nasional Bhd recording the second highest net money inflow of RM8.25 million and United Plantations Bhd the third highest net money inflow of RM6.62 million.

Meanwhile, Fraser & Neave Holdings Bhd again saw the largest net money outflow of RM19.87 million last week.

Malayan Banking Bhd recorded the second largest net money outflow RM16.8 million during the week under review while Nestle ( Malaysia) Bhd registered the third largest net money outflow at RM7.63 million.