MIDF Research says cumulative net foreign inflow into Bursa for 2016 fell to RM2.42bil
PETALING JAYA: Foreign investors continued to be net sellers on Bursa Malaysia with attrition out of Malaysian equity spiked up again last week, according to MIDF Research.
“The net amount sold by foreigners on Bursa was RM780.5mil last week, higher than the week prior figure of only RM493.3mil. The heavy tide out of Malaysia equity is less evident in most other Asian markets,” it said in its weekly report.
It noted that foreign investors continued to be net sellers throughout the week. There was a spike of RM487.6mil on Wednesday. Besides that, the attrition level ranged between RM150mil to RM30mil with the lowest recorded on Thursday of RM36.2mil.
On a cumulative year-to-date, MIDF said the amount of net-selling from foreigners has further deepen to RM2.2bil in contrast to an inflow of RM6.47bil in April.
“However, compared to 2015, the outflow amount is still considered low as only RM8.6bil has been redeemed since April. It was RM19.5bil net outflow in 2015,” MIDF said.
It added that retail investors continued to be positive at RM476.7mil maintaining its levels in October. However, the buying on dips conviction fell last week to RM37.9mil.
Last week, Tenaga Nasional Bhd
(TNB) registered the highest net money inflow of RM40.09mil. However, its share price lagged with a -1.13% loss against the FBM KLCI which recorded a slight 0.10% gain during the week under review.
“It is notable that net money inflow amidst retreating share price may indicate a buy on weakness (BOW) stance among some investors,” MIDF said.
Fraser & Neave recorded the second highest net money inflow of RM6.88mil while Malayan Banking saw the third highest net money inflow of RM6.79mil.
On the other hand, Public Bank saw the largest net money outflow of RM46.37m last week. Nonetheless, its stock price outperformed during the review week with a 0.72% gain vis-à-vis a smaller 0.10% rise in the FBM KLCI.
“It is noteworthy that net money outflow amidst advancing share price indicates a sell on strength (SOS) stance among some investors,” MIDF said.
IHH Healthcare recorded the second largest net money outflow RM16.32mil during the week under review. Accordingly, its share price underperformed the market benchmark with a 0.16% weekly loss.
Petronas Chemicals registered the third largest net money outflow at RM13.27mil in the review week. However, its share price outperformed with a 1.33% gain which may attract a SOS stance among some investors.
Limited time offer:
Just RM5 per month.
