MIDF Research said in retrospect, foreigners offloaded -RM19.5bil and -RM6.9bil in 2015 and 2014 respectively.
KUALA LUMPUR: Foreign investors were net buyers on Bursa Malaysia in the week ended July 21 at RM76.30mil, which was the first time the weekly inflow fell below the RM100mil in 2017, says MIDF Equities Research.
It said on Monday the net buying was also the lowest recorded for the year and only one-quarter of the inflow compared with the previous week. It added that it was a challenging week for emerging markets as political uncertainty builds up in the US.
Net foreign purchases were recorded in three out of five trading days. Net buying intensity was generally low and did not exceed RM150mil.
“We note that foreign buying peaked on Monday at RM110.0mil net amid bolstering optimism in Asia coming from China’s positive GDP data.
“Despite the tapering of foreign purchases last week, the cumulative year-to-date inflow remains above the RM10bil mark at RM10.35bik (approximately US$2.35bil), the highest among its South East Asian peers,” it said.
MIDF Research also pointed out foreign participation rate was rather sluggish. The average daily trade value (ADTV) declined by 17% for the week, from RM893mil to RM739mil, being under RM1bil level for the third week.
“After four lacklustre weeks, retail inched higher to a moderate level. Retail ADTV increased by 17%, above the RM700mil level to RM778.4mil from RM665.4mil,” it said.
Tenaga Nasional stocks were the beneficiary of the highest net money inflow of RM14.31mil. Its share price underperformed the benchmark index with a 0.56% loss for the week. The net inflow amidst declining share price indicates a buy-on-weakness (BOW) stance among some investors.
Public Bank saw the largest net money outflow of -RM25.18mil last week. Its stock price however lagged as it ended unchanged against the KLCI which rose 0.24%.
CIMB recorded the second largest net money outflow -RM21.70m during the week under review. Its share price underperformed the KLCI with a 0.16% gain for the week. It is notable that the net money outflow amidst advancing share price indicates a sell on strength (SOS) stance among investors.
Maybank registered the third largest net money outflow at -RM15.75mil, with its share price underperforming the KLCI with a 0.10% gain.
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