Foreign funds continue buying on Bursa Malaysia

UOB Kay Hian Malaysia Research expects Malaysian equities to be energised in 1H17 by a firmer ringgit and general election buzz.

KUALA LUMPUR:  Foreign funds remained net buyers on Bursa Malaysia on Monday with net buying at RM404.1mil, according to BIMB Securities Research.

However, local institutions were net sellers at –RM408.6mil but retail investors net buyers at RM4.5mil. 

“We reckon the local market to trend sideways today due to mixed global sentiment and expect the index to hover around 1,710-1,720,”  it said. 

Overnight, Wall Street closed higher supported by a recovery in oil prices while European markets finished lower as investors struggled to find comfort in the oil price. 

The DJIA closed up 21.57 points, or 0.12%, at 17,623.87, while the S&P 500 closed up 2.02 points, or 0.10%, at 2,051.60, with telecommunications leading six sectors higher and materials led the laggard. 

BIMB Research said in Asia, stock markets took a tumble with Singapore's Straits Times index among the biggest losers. 

However, Shanghai Composite and Shenzhen Composite were in positive territory after state-backed China Securities Finance Corp said it would begin to offer margin financing to securities firms again after a previous suspension. 

“Back home, the FBM KLCI ended slightly higher, increased 2.02 points or 0.12% to 1,718.36. Trading participation shows net selling by local institutions while foreign institutions and local retail were net buyers,” said the research house.