UOB Kay Hian Malaysia Research expects Malaysian equities to be energised in 1H17 by a firmer ringgit and general election buzz.
KUALA LUMPUR: Foreign purchases on Bursa Malaysia continued at a measured pace in the week ended April 14 at RM239.9mil, which was significantly lower from the RM645.3mil the week before, says MIDF Research.
It said on Monday despite the slower net buying, foreign investors have been net buyers on Bursa for the 10th consecutive week.
“On a positive note, foreign investors were net buyers every single day last week. The buying was nevertheless lacklustre, reflecting non-committal fervour among the investors,” it said.
The performance of Bursa Malaysia and the foreign funds was to be expected as the global equity market was consolidating and trading had been disrupted by closures in a few markets.
“The silver lining is that the local market has been spared of an abrupt and destabilising withdrawal.
“Year-to-date, the cumulative foreign purchases amounted to RM6.63bil. While this is sizeable, it is still only about half compared to the same trading period in 2013, which was the last General Election year,” it said.
Kuala Lumpur Kepong registered the highest net money inflow of RM14.32mil last week. Its share price declined by -3.48%, underperforming against the FBM KLCI which fell -0.62% during the week under review.
“On this score, it is notable that the net infl ow amidst declining share price indicates a buy on weakness (BOW) stance among some investors,” it said.
However, MIDF Research noted that Malaysia Airports (MAHB) saw the largest net money outflow of -RM22.56m last week. Its stock price underperformed the benchmark index with a -1.39% loss.
Power giant Tenaga Nasional recorded the second largest net money outfl ow -RM15.11mil during the week under review. Its share price outperformed the benchmark index with a 0.15% gain.
Tenaga had anounced the sale of 1Malaysia Development Bhd (1MDB) energy assets for RM10.2bil cash to China General Nuclear Power Corp (CGN) and its subsidiaries included development rights, that broke away from industrial practice.
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