Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said investors are expected to begin their pre-new year shopping in the last week of 2015.
KUALA LUMPUR: Foreign selling on Bursa Malaysia continued for the fifth consecutive week, but at a receding magnitude, according to MIDF Research.
“The net amount off loaded by foreign investors edged down to about RM709mil from RM1,158mil the week prior. This is estimated based on transactions in the open market which excluded off market deals,” it said, adding that foreigners were net sellers on all days but one last week.
As of Friday, foreign investors had been selling in 21 out of 23 straight days.
“We note that prior week’s selling momentum was carried forward into last week. The market started the week with a softer foreign selling at RM89.3mil. However, the momentum picked up on Tuesday with an attrition of RM318.5mil. It was the second highest year-to-date daily attrition.
“Selling pressure later on subsided slightly to RM238.9mil on Wednesday, with the pace further slowed down to RM102.8mil on the following day. Foreigners finally reversed the selling trend, which had lasted for 10 straight trading days, on Friday with a net buying of RM40.1mil,” MIDF said in its fund flow report.
Last week’s foreign withdrawal further reduced the cumulative net foreign inflow thus far this year into share listed on Bursa to an estimated RM2.48bil, down from prior week RM3.19bil.
MIDF said the figure had been on a declining trend for the fifth week. However, it said the amount was still modest relative to the RM19.5bil and RM6.9bil net outflow in 2015 and 2014 respectively.
Foreign participation rate edged down by RM74mil last week. It has declined to RM927mil from prior week’s RM1bil.
“This was its first time in one month to be at below RM1bil level. Daily total foreign trade was weak on Monday at RM580mil, and consistently stayed below RM1bil for the following three days. However, trading spirit picked up on Friday to RM1.29bil, the third highest daily trading volume in May,” it said.
MIDF said local institution continued to support the market, mopping up RM679mil. However, its participation rate declined for the second week to RM1.82bil, the lowest since February this year.
“Retail buyers turned net buyers last week by loading up RM30.4mil. Their participation rate edged up marginally to RM607mil,” it added.
Public Bank registered the highest net money inflow of RM30.28mil last week. However, its share price underperformed the market benchmark with a 0.10% weekly decline.
In comparison, the FBM KLCI ended slightly higher at 0.52% during the week under review. It is notable that net money inflow amidst retreating share price may indicate buy on weakness stance among some investors. The bank recently raised its BR which would help to alleviate pressure on NIM.
Digi.com came in second with RM13.45mil net inflow while Malayan Banking recorded the third highest net money inflow of RM9.58mil.
On the other hand, Tenaga Nasional saw the largest net money outflow of RM15.15mil during the review week. QL Resources came in second last week with a net outflow of RM2.35mil and Sime Darby registered the third largest net money outflow at RM2.09mil in the review week.
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