MONDAY, JULY 25 KUALA LUMPUR- Bursa Malaysia briefing for its first half 2016 results, Conference Room, Ground Floor, Bursa Malaysia Bhd, Bukit Kewangan, Kuala Lumpur at 1430 (0630 GMT), KUALA LUMPUR- Prime Minister Najib Tun Razak hands offer letters for Special Pilgrim Programmes at Tuanku Mizan Zainal Abidin Mosque -- 1200 (0400 GMT) KUALA LUMPUR- Deputy Prime Minister Ahmad Zahid Hamidi receives courtesy call from newly appointed Malaysian envoys at deputy prime minister's office, Level 4 at 1345 (0545 GMT) KUALA LUMPUR- Communications and Multimedia Minister Salleh Said Keruak attends the ministry's Hari Raya celebration at Communication and Multimedia Ministry's complex, Presint 4 at 1230 (0430 GMT)
haKUALA LUMPUR: Foreign funds have been making a comeback on Bursa Malaysia so far this year and could benefit some familiar heavyweight counters, according to MIDF Research.
“While it may still be too early to be too optimistic, but if the momentum of foreign net inflows persists, buying interest is likely to return to the familiar heavyweight names that came down in tandem with the general decline in foreign shareholdings during the past years,” it said, adding that it maintained its FBM KLCI 2017 year-end target of 1,830 points.
MIDF believed heavyweights such as Digi.Com, Axiata Group, Sime Darby, CIMB Group
, Maybank, Petronas Dagangan, Sapura Kencana and IHH Healthcare were amount stocks that may attract higher foreign shareholdings in 2017.
According to MIDF, foreign investors have been making a comeback and had been net buyers in five out of the first nine trading days in 2017.
Indeed the aggregate net inflow of foreign funds in the first nine days of this year amounted to RM485mil had been the highest since 2013, which corresponded with the year of the last general election.
“Most notably, foreign investors had been net purchasers in the last three trading days (Wednesday, Thursday, and Friday). The three-day haul of RM468mil is the highest since September last year. The sequential-day inflow is a positive sign that confidence is returning,” it said.
“It is no coincidence that the foreign funds are returning in what is widely expected to be an election year. Markets in this region tend to perform well when the electorates go to the poll and signs are abound that the incumbent government will call for an election this year.
“Foreign funds are therefore expected to take tactical position in local stocks ahead of the polling date,” MIDF said.
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