Foreign net buying on Bursa stretches for 12 consecutive weeks


  • Markets
  • Tuesday, 02 May 2017

KUALA LUMPUR: There was an influx of foreign liquidity into Bursa last week despite it being a 4-day trading week, according to MIDF Research. 

The research house foreign purchase of equity listed in the open market (excluding off market deals) surged to RM1.45bil net, the second highest in a week this year and five times more than that the week before.

“Foreign buying on Bursa has now stretched for 12 consecutive weeks, the longest since the 24-week buying streak which ended in May 2013, the month of the last General Election,” MIDF said in its weekly fund flow report. 

The research house said most foreign buying occured on Tuesday and Friday when the amount reached RM415.2mil and RM405.8mil net respectively. 

In the first four months of 2017, the inflow has exceeded RM400mil on five different days.

In comparison, MIDF said the day-count was eight in 2013, two in 2014, one in 2015 and five in 2016.  

“For the month of April, the cumulative foreign net purchases amounted to RM2.62bil. That was slightly more than half the cumulative inflow in March 2017 which amounted to RM4.70bil,” MIDF said. 

The research house noted that foreign participation on Bursa bounced strongly last week to an elevated level.

It said foreign average daily trade value (ADTV) was up by 56% to RM1.34bil.

Indeed, the foreign daily trade value was above RM1bil for every single day of the week.

Retail participation has started to recover as the ADTV increased by 25% to RM1.10bil.

However, retailers are still on “take-profit” mode, selling for 10 weeks in a row.

Last week, Genting Malaysia stocks were the beneficiary of the highest net money inflow of RM16.51mil. Its share price decreased by 1.84%,underperforming against the FBM KLCI which increased by 0.68% during the week under review. 

On this score, it is notable that the net inflow amidst declining share price indicates a buy on weakness (BOW) stance among some investors.

The second highest net money inflow was into UMW Holdings amounted to RM10.62mil while Bintulu Port saw the third highest net money inflow of RM6.09mil. 

Maybank saw the largest net money outflow of RM28.68mil last week. Its stock price outperformed the benchmark index with a 1.91% gain.

On this score, it is notable that the net outflow amidst declining share price indicates a sell-on-strength (SOS) stance among some investors.

AirAsia recorded the second largest net money outflow of RM20.11mil during the week and Petronas Chemicals registered the third largest net money outflow at RM13.87mil. 

Meanwhile, MIDF said the ringgit maintained its upward momentum by closing at US dollar RM4.3410, 1.32% higher than the week before, extending its third week of gains. 

It noted that the the KLCI recorded its second week of gains by closing at 1,768 points on Friday, the highest in almost two years.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

TDM says CEO Zainal Abidin resigned over disagreement with chairman�
Petronas posts RM3.4bil net loss in Q3
Boustead appoints former Telekom boss Shazalli Ramly as new Group MD
Public Bank 3Q net profit higher at RM1.39b
CIMB's 3Q pre-tax profit improves sequentially on higher operating income
Kenanga IB profit up tenfold as brokerage, trading income soar
Palm oil’s stunning rally is set to boost supermarket prices
Alliance Bank posts lower 2Q net profit of RM103.94m on higher reserves
Pandemic and travel curbs hit Datasonic Q2 earnings�
Higher net profit for Hong Leong Bank

Stories You'll Enjoy