JF Apex Research: "Over a medium to long term outlook, we are cautious on the FBM KLCI performance as it still treads below the 100- and 200-day moving averages at 1,650 and 1,700 points respectively."
KUALA LUMPUR: Foreign funds remained net buyers on Bursa Malaysia, stretching to 18 straight weeks this year and totalling RM10.39bil, according to MIDF Research.
It said on Tuesday foreign investors remained faithful as they continued to pump liquidity at a sustained rate into stocks listed on Bursa.
“Foreigners purchased RM249.8mil net in the open market (excluding off market deals), maintaining the amount of foreign buying just above RM200mil for the third week running,” it said.
MIDF Research said the cumulative foreign net purchases in 2017 has reached RM10.39bil, offsetting about 35% of the total cumulative net outflow recorded in 2014-2016.
The research house said there was relatively heavy foreign buying on Monday amid optimism from Wall Street’s record high rally on Friday the week before. This more than offset the marginal selling on Wednesday and Friday
However, MIDF Research said foreign average daily trade value (ADTV) fell by almost half to RM999mil from RM1.94bil the week before, the largest weekly drop this year. The daily foreign trade value only exceeded RM1bil once during last week.
Tenaga Nasional was the beneficiary of the highest net money inflow of RM28.31mil last week. Its share price substantially outperformed the FBM KLCI with a 4.35% gain during the review week.
Sime Darby recorded the second highest net money inflow at RM11.51mil. Its share price underperformed the benchmark index with a -0.10% loss during the review week.
The net inflow amidst cdeclining share price indicated a buy-onweakness (BOW) stance among some investors.
MIDF Research said Maybank saw the largest net money outflow of -RM17.87mil last week. Its stock price underperformed the KLCI with a 0.42% gain.
“The net outflow amidst advancing share price indicates a sell-on-strength (SOS) stance among some investors,” it said.
As for Public Bank, it recorded the second largest net money outflow -RM12.22mil during the week under review. Its share price outperformed the KLCI with a 1.29% gain.
CIMB Group
registered the third largest net money outfl ow at -RM10.37mil. Its share price underperformed the KLCI with a 0.30% gain. CIMB is selling 50% of its international brokerage unit to China Galaxy Securities.
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