Affin Hwang Investment Bank Bhd head of retail research Datuk Mohd Nazri Khan expects it would be
KUALA LUMPUR: Malaysian equity foreign fund flow turned negative again last week. The positive net foreign fund flow of the prior week, its first since before the US election in November, was regrettably short-lived, according to MIDF Equities Research.
“The net amount sold by foreigners on Bursa last week was RM481.7mil compared to the prior week’s net purchase of RM44mil. Nevertheless, as stated earlier, the negative foreign fund flow last week was equally prevalent in many other Asian equity markets,” MIDF said in its weekly report.
The research house said foreign investors have been selling off their investments throughout the whole week on net daily basis. The highest attrition was on Friday of -RM163.4mil and the lowest was on Tuesday of -RM18.3mil.
On a cumulative year-to-date, the amount of net selling by foreigners this year has expanded further to RM3bil. However, compared to last year, the outflow amount is still relatively low vis-à-vis -RM19.5bil net outflow in 2015.
It said retail investors gross participation rate continued to expand to RM392.6mil from RM378.5mil in the prior week. This is in-line with the higher buying on dips conviction which surged to RM84.9mil from RM14.1mil during the prior week.
On the other hand, MIDF said the institutional investors gross participation rate fell to RM1,667.0mil from RM1,925.7mil in the prior week.
MIDF said Petronas Gas Bhd
registered the highest net money inflow of RM21.73mil last week. Accordingly, its share price outperformed the broader market recording a slight 0.19% gain as the FBM KLCI dropped by 1.26% during the week under review. In related news, its parent company Petronas expands into Iran with recent signing of MOUs on two oilfields with the National Iranian Oil Company.
Tenaga Nasional Bhd recorded the second highest net money inflow of RM18.38mil while Sime Darby Bhd saw the third highest net money inflow of RM14.17mil.
Public Bank Bhd saw the largest net money outflow of RM11.21mil last week. Nonetheless, its stock price outperformed in spite of a -0.61% loss vis-à-vis the FBM KLCI which declined by a larger 1.26% during the review week.
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