Equity market kicks off 2017 on a good note

PETALING JAYA: The Malaysian equity market welcomed the new year on a positive note with a net amount of RM101.8 million transacted by foreign investors on Bursa Malaysia in the first week of the year compared with RM31.2 million sold in the last week of 2016.

“This could be attributable to the general inflows into Asia last week and supported by Malaysia’s en- couraging trade numbers which saw an uptick in exports by 7.8% yearon-year in November,” MIDF Research said in its fund flow report yesterday.

According to data released last week, exports were higher by 7.8% year-on-year while the KLCI was up 2.06% on-week to 1,675.49 and the ringgit was stronger by 0.31% at 4.4725.

“On a net daily basis, foreign investors were seen buying on Tuesday and Friday, with the bulk on the latter day of RM136.4 million. Attritions on Wednesday and Thursday were identical at RM28.2 million,” said MIDF Research.

Meanwhile, retail investors’ gross participation rate continued to expand for its second week in a row to RM596.1 million from RM429.6 million in the prior week, despite the buying on dips conviction, which has turned negative for the second week to RM123.3 million compared with the prior week of RM68.8 million.

Institutional investors’ gross participation rate improved for the second week in a row to RM2.06 billion from RM1.92 billion in the prior week.