UOB Kay Hian Malaysia Research expects Malaysian equities to be energised in 1H17 by a firmer ringgit and general election buzz.
KUALA LUMPUR: Foreign fund selling on Bursa Malaysia slowed down in the week ended Dec 9 to the pre-US presidential elections, says MIDF Equities Research.
The research house said on Tuesday the net amount sold by foreigners on Bursa was only -RM392.4mil last week, the lowest level since Oct 28.
“This could be signaling a recovering confidence of foreign investors towards Malaysian equity. It is also notable that the tide out had in fact reversed last week in most other Asian markets,” it said.
MIDF Research said foreign investors turned net buyers later in the week as evident by the slight build up on Thursday and Friday of RM26.7mil and RM42.2mil respectively.
However, this was still not enough to offset the attrition on Monday which was rather heavy at -RM220.1mil. The lowest attrition was on Wednesday of -RM78.0mil.
“Year-to-date, the amount of net-selling from foreigners has further deepened to -RM2.5bil. However, compared to 2015, the outflow amount is still considered low as only RM8.6bil has been redeemed since April. Net outflow in 2015 was -RM19.5bil,” it said.
The research house said while retail investors’ gross participation rate continued to be positive at RM348.5mil, it was nonetheless at the lowest rate since mid-July.
Despite the lower rate, the buying on dips conviction increased last week to RM21.1mil.
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