KUALA LUMPUR: Foreign investors gave a strong thumbs-up to the outcome of the 13th General Election, snapping up an unprecedented net RM3.1bil of Malaysian equities in the open market, says MIDF Equities Research.
The research house said the purchase of the equities for the week ended March 10 also marked a record 22 straight weeks of net foreign buying.
“Net foreign buying surged to RM1.4bil on Monday, the highest ever purchase in a single day, as the FBM KLCI leapt by 131 points on opening.
"The strong buying momentum continued on Tuesday and Wednesday, and as expected fizzled in the last two days of the week. Overall, net foreign purchase averaged a whopping RM623mil per day last week,” it said.
MIDF Research said so far this year, foreign investors have bought RM17.4bil net of Malaysian equity in the open market compared with RM13.7bil in 2012,” it said.
As for local investors, they took the opportunity of heavy foreign buying to offload their positions significantly.
“Local retail investors sold net RM727mil last week on heightened participation rate of RM1.5b. So far this year, local retailers have already sold net, RM5.9bil, surpassing the RM4.2bil recorded for the entire 2012,” said the research house.
“Selling by local funds also hit unprecedented level last week. Net sale by local funds hit RM2.39bil, also at an unprecedented participation rate of RM3.57bil," it said.
So far in 2013, local funds have reduced their equity exposure by a massive RM11.5bil net, compared with RM9.5bil for the entire 2012, it said.
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