KUALA LUMPUR: Foreign investors continued to pump liquidity into stocks listed on Bursa Malaysia in the first week of 2018.
In its weekly fund flow report, MIDF Research said investors mopped up RM915.1mil net of local equities last week, the biggest weekly net inflow recorded since March 2017.
The research house said last week, foreign investors were net buyers on all four trading days, extending the buying binge to nine trading days from Dec 22, 2017 to Jan 5, 2018.
The last time the daily buying streak was longer than this was during the period from April 20, 2017 to May 15, 2017 which was 16 days.
Foreign buying peaked on Thursday as foreign investors snapped up RM316.1mil net, a level not reached since April 28, 2017.
“The heavy foreign buying on Thursday coincided with Bursa closing above the 1,800 level for the first time in more than 2.5 years which was led by gains in Sime Darby Bhd that surged 11.2%,” MIDF said.
It added that the bullish Brent crude oil price also played a part in sustaining the optimism on Bursa’s Thursday rally.
On Friday, the FBM KLCI continued its ascent to end the week at 1,818 points despite some tapering in foreign funds inflow to RM130.1mil net as risk-on sentiment was boosted by Malaysia’s exports which grew by 14.4%year-on-year in November 2017, highest export value ever recorded for a particular month.
“As we look at the foreign participation, foreign investors appear really active as they have returned back from the year-end holiday.
“The foreign average daily trade value (ADTV) was up by a staggering 127% at RM1.26bil compared to RM556mil recorded in the final week of 2017,” MIDF said.
The retail market was also vibrant as the retail ADTV increased by 62% from RM1.2bil in the preceding week to RM1.9bil last week.
Sime Darby registered the highest net money inflow of RM5.67mil last week.
On the other hand, Petronas Dagangan saw the largest net money outflow of RM23.07mil last week.
Maybank gain recorded the second largest net money outflow of RM9.94mil and Bursa Malaysia registered the third largest money outflow of RM6.34mil.