Foreign funds continue buying on Bursa but at slower pace

  • Markets
  • Monday, 08 May 2017

UOB Kay Hian's top picks are Gamuda, Tenaga, Genting Bhd and Bumi Armada,

KUALA LUMPUR: The momentum of global money flow into Asian equity continued last week, albeit at a slower pace, according to MIDF Research. 

The research house said foreign investors maintained their conviction in local equities despite a challenging week for emerging market currencies and uncertainty ahead of the French election.

“After an influx of foreign liquidity the week before, the flow of funds from abroad into stocks listed on Bursa eased to RM576.5mil (excluding off market transactions) last week. 

“Net foreign buying has now extended to 13 consecutive weeks. It is longer than the 10-week inflow into Indonesia which the only other Asian emerging market currently attracting sustained foreign interest,” MIDF said in its weekly fund flow report. 

It said the buying intensity was generally low to moderate and did not exceed RM300mil. 

“We note that foreign investors remained net buyers on Thursday although KLCI declined by 0.78% the second biggest daily drop this
Year,” it said. 

Foreign participation on Bursa remained at an elevated level. Foreign average daily trade value (ADTV) remained above RM1bil at RM1.02bil, albeit lower than that the week before.

Retail participation recovered further as the ADTV increased by 16% to RM1.29bil, the second highest this year. 

Moreover, the 10-week selling streak by retailers came to a halt after retailers purchased RM20.1mil worth of local equities. 

On Tuesday, the traded value hit RM1.44bil, the highest this year.

MIDF said Genting Malaysia stocks were the beneficiary of the highest net money inflow of RM16.51mil last week. 

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

On the other hand, Maybank saw the largest net money outflow of -RM28.68m last week.

AirAsia recorded the second largest net money outflow -RM20.11m during the week under review while Petronas Chemicals registered the third largest net money outflow at -RM13.87mil.
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