Foreign investors sweep up RM7.32bil in 10 week period

KUALA LUMPUR: Foreign investors stretched their equities buying spree to 10 consecutive weeks, bringing the total amount to RM7.32bil, said MIDF Research in a note on Monday. 

The amount had receded for five consecutive weeks from the peak recorded in the week ended March 18, when RM1.48bil was mopped up.

At market close last Friday, the tally for the week for the amount of listed equities bought by foreign investors stood at RM107mil, based on transactions in the open market and excluding off market deals.

Foreign investors were net sellers in the first three trading days of the week, but the amount was marginal each day. On Thursday, foreign investors made a sudden comeback, buying up RM207.3mil, the highest in 13 trading days. 

That made it 21 out of 76 days this year that net purchase by foreign investors had exceeded RM200mil in a day. Foreign investors remained net buyers on Friday but the amount dwindled to RM57mil.

Last week’s foreign purchases boosted the cumulative year-to-date net inflow to RM6.4bil, still relatively low after the -RM19.5bil net outflow for the whole of 2015 and -RM6.9bil in 2014. 

After two weeks in decline, foreign participation rate stabilized. The average daily value of shares traded rose marginally by 2% to RM850mil, from RM833mil the week before. 

On Wednesday, participation surged to RM1.1bil, only the second day in 11 that the RM1bil mark had been broken. Nevertheless it was not sustainable as participation rate receded again. 

On Friday, foreign trade was only RM741mil, the lowest in 8 days.

Local funds remained net sellers, offloading -RM104.6mil last week while participation rate remained lively with average value traded rising to RM2.2bil.

Retail interests may be returning as participation rate rebounded 8% to RM623mil, the highest in four weeks. However, it was still in the low zone, said the research house.