Foreign buying of Malaysian equities shrinks to RM25m

KUALA LUMPUR: Foreign buying of Malaysian equities shrank to net RM25mil in the week ended June 27, which the second lowest in a week so far in 2014, says MIDF Equities Research.

 

It said on Monday on a more positive note, the foreign buying was positive for the 10th consecutive week though the amount declined further.

 

“On cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014, but the net outflow as of last Friday had declined to only -RM1.63bil. In 2013, Malaysia reported a net inflow of +RM3.0bil,” said the research house.

 

MIDF Research said on a positive note, foreign participation on the local bourse spiked up significantly last week.

 

“The average daily foreign participation rate (average daily gross purchase and sale) on Bursa surged past the RM1bil mark to RM1.006bil, after staying below RM900mil for two consecutive weeks,” it said.

 

The research house said retail investors' interests also continued to rebound, albeit gradually. Retail participation jumped to RM788mil, the highest in eight weeks although it was still lower than the average of RM846mil for the year.

 

“Sellers still overwhelmed buyers for the 11th week in a row as retailer investors offloaded RM65mil.

 

“Local institutions bought a marginal RM41mil last week. However, participation rate rose strongly to RM2.22mil, after staying below RM2bil for three consecutive weeks,” it said.