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KUALA LUMPUR: Foreign buying tip-toed into Bursa Malaysia in the week ended Feb 15 after the heavy selling the previous week, with net buying at a cautious RM4.5mil, says MIDF Research.
It said on Monday that after a huge sell off in the preceding week, foreign investors increased their exposure in stocks listed on Bursa ahead of the Chinese New Year break.
MIDF Research said the net buying of RM4.50mil by foreign funds during the 3.5 days of trading last week was the smallest thus far this year.
It pointed out foreign funds were net buyers on all trading days except Monday which saw an attrition of -RM230.3mil net.
Foreign buying was the highest on Tuesday at RM112.7mil net with trading value exceeding RM1.5bil, the highest in four trading days.
On Wednesday, the announcement of Malaysia’s GDP expanding by 5.9% on-year in 2017 compared with a 4.2% expansion in 2016 saw the FBM KLCI close at a four-day trading high of 1,835.
“Nonetheless, foreign buying only stood at RM62.4mil net, the second lowest during the week as foreigners remained anxious ahead of the US inflation data,” it said.
MIDF Research said the KLCI inched higher to 1,838 on Thursday as investors shrugged off strong US inflation data but foreign buying declined further to RM59.7mil net as foreign investors entered risk-off mode right before the Chinese New Year holiday.
“Overall, Malaysia bucked the trend with an infl ow, as the Philippines, Thailand and Indonesia all experienced attrition.
“Foreigners have so far acquired RM1.86bil net in the fi rst seven weeks of 2018, higher than the RM1.11b recorded during the same period in 2017.
“Although the foreign average daily trading value (ADTV) declined by 35% from RM1.61b in the week before to RM1.04bil last week, we deem the foreign participation to be still healthy given that last week was a short trading week and Thursday was a half trading day,” said MIDF Research.
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