Malaysia is the only beneficiary of foreign inflow last week

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KUALA LUMPUR: Malaysia is the only beneficiary of foreign inflows last week, according to MIDF Research.

“We note that Malaysia was the only beneficiary of inflows last week among four Asean markets we track,” it said in its weekly fund flow report.

The research house noted that international funds staged a commendable return to stocks listed on Bursa despite the havoc happening between Beijing and Washington

“Based on preliminary data from Bursa which excluded off market deals, the net amount snapped up by foreign investors last week amounted to RM328mil net offsetting the RM301.3mil net disposed in the preceding week,” it said in the report.

MIDF said the first day of 2Q18 started off with an attrition worth RM40.6mil net on Monday as investors were cautious regarding the timing of Malaysia’s 14th General Election (GE14).

The level of foreign attrition later peaked on Wednesday at US$90.1mil net as investors digested China’s move to impose a tariff of 25% on US$50bil worth of U.S products.

Southeast Asian markets including Malaysia and its peers were badly hit on Wednesday as all three posted daily losses of more than 1.0%.

“Nonetheless, foreign investors made their way back to Bursa on the next day, acquiring RM158.9mil net of local equities amid news of possible talks between the U.S and China regarding trade,” MIDF said.

It is noteworthy that foreign investors still entered Malaysia at a higher pace of RM212mil net on Friday despite threats by President Trump to slap US$100bil in additional tariffs on China.

The upbeat momentum was probably buoyed the GE14 that has come in sight after the announcement that parliament will be dissolved on Saturday.

On a year-to-date basis, foreigners have so far accumulated RM2.53bil net of local equities.

Out of the 14 weeks that have passed in 2018, only three experienced net outflows.

Foreign participation improved a bit as the foreign average daily trade value (ADTV) increased by 13% to settle above the RM1bil mark.

The retail market too was vibrant with the ADTV also increasing by 13% to RM953mil.

Meanwhile, Genting Bhd registered the highest net money inflow of RM11.13mil for the week ended April 6.

Telekom Malaysia Bhd recorded the second highest net money inflow of RM3.33mil while Padini Holdings saw the third highest net money inflow of RM2.41mil.

On the other hand, Public Bank Bhd saw the largest net money outflow of RM30.75mil last week.

Fraser & Neave Holdings Bhd recorded the second largest net money outflow of RM17.17mil while CIMB Group registered the third largest net money outflow at RM11.15mil.