THE volume and value of transactions on the KLSE have been growing steadily since July this year, albeit with intermittent profit-taking.
Yesterday’s transactions, worth RM2.38bil, were the highest in three years.
This compares with RM1.63bil on Wednesday.
The most recent comparision was the July 3 transaction when values hit RM1.99bil and on Feb 22, 2000, the value was a record RM4.2bil.
The number of shares that changed hands in yesterday’s trading totalled 1.12 billion, up from 821 million the previous day.
The highest transactions in terms of volume recorded for the month of July was on July 15, which was 1.4 billion shares; for August on Aug 27 – 1.17 billion; and September on Sept 10 – 1.12 billion.
Some market players doubt whether such volumes and values can been sustained, but JP Morgan Malaysia head of research Tan Pye Sen does not see why the volume cannot be sustained “as long as there is interest in the market.’’
“So long as the fundamentals stay intact, the volume can be sustained. We have seen this kind of volume in the past,” he said, adding that there would of course be profit-taking along the way.
If previously local players – be they local funds or retail – had been holding the fort, this time there was participation from foreign funds, which meant added liquidity in the market to drive up volumes and values.
Dealers say most of the money flowing into the market is new money, not existing funds switching portfolios.
The value of transactions had been on the uptrend since Monday, from RM911mil to RM1.12bil on Tuesday, and to RM1.63bil on Wednesday.
The number of shares changing hands rose from 614 million on both Monday and Tuesday and to 821 million on Wednesday.