Foreign funds net buyers on Bursa for fourth week

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

KUALA LUMPUR: Foreign investors continued to be net buyers of Malaysian equities for the fourth week though the intensity appears to be easing, according to MIDF Research.

It said on Monday that based on preliminary data from Bursa Malaysia which excluded off-market trades, foreign investors bought RM121.1mil net in the week ended March 3, 2017 compared with RM198.0mil the week before.

“February was a surplus month as foreigners mopped up RM955.5mil net. This was more than double the RM418.8mil net inflow in January,” it said.

MIDF Research said March started on an auspicious note with a net foreign aggregate inflow for the first three days amounted to RM49.5mil.
 
There was heavy buying recorded on Thursday with a net inflow that exceeded RM200mil for the third time this year.

In contrast, regional peers such as Thailand and Philippines experienced foreign net outflow last week.

“Foreign traders are currently in active trading mode. We note that foreign participation rate surged by 46% to an elevated level of RM1.2bil last week. This was the second time the foreign average daily trading volume (ADTV) breached the RM1bil mark.

“The retail market remained relatively healthy although retailers were net sellers to the tune of RM154mil last week. Retail participation is relatively high as the weekly ADTV rose near to the RM1bil mark. It was the highest ADTV so far this year,” it said.