PETALING JAYA: Foreign investors continued to be net buyers in the domestic equity market for the second consecutive week, driven by positive quarterly earnings and crude oil price rally.
In its weekly fund flow report, MIDF Research said that foreign investors acquired RM273.3mil worth of Malaysian equities in net value last week.
The figure, which excluded off market trades, was more than three times the amount acquired in the preceding week worth RM86.6mil.
“Foreign funds continued to enter into Bursa Malaysia last week at an intensified level during the holiday-shortened week.
“Last week, foreign investors were net buyers on all four trading days, the longest buying binge since September.
“The latest recorded net inflow has brought the year-to-date foreign purchase to RM9.37bil from RM9.1bil in the week before.
“November is the fourth month of foreign selling this year but it is noteworthy that the level of attrition has shrunk to a net sale of RM15.4mil, compared with the previous months which ranged from RM200mil to RM700mil,” stated the research house.
Net foreign buying was the highest on last Monday at RM92.2mil, amid the rally in crude oil prices a week earlier.
The foreign fund net inflow later dropped to RM31.3mil on Wednesday.
According to MIDF Research, the slump could be due to Sime Darby Bhd’s trading suspension to facilitate the completion of its demerger exercise or North Korea’s missile launch.
“Nonetheless, foreign investors upped their ante on Thursday as they acquired RM62.8mil net as positive quarterly earnings buffered the fall of Sime Darby’s spin-off entities on the first day of trading.
“We note that the trend of foreign inflow into Bursa bucked the majority of its Asian peers,” it pointed out.
The rebalancing of the MSCI index has led the foreign average daily trade value (ADTV) to surge by 192% to RM2.5bil.
However, the retail market was rather subdued as the retail ADTV remained below RM850mil for the second week running.
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