Foreign funds bought RM324.7m equity last week

  • Markets
  • Monday, 16 Apr 2018

An analyst told Bernama that the macro factors expected to affect the FTSE Bursa Malaysia KLCI next week, includes the Group of Seven(G7) meeting as investors search for clues on the trade outlook, as well as the timing of the next interest rate hike by the US Federal Reserve (Fed) which meets on June 12.

KUALA LUMPUR: International investors continued to make their way to accumulate stocks listed on Bursa last week albeit at a rather similar pace compared to the week before, according to MIDF Research.

In its weekly fund flow report, MIDF said based on preliminary data, foreign investors acquired RM324.7mil equities last week, the eight time in 2018 that weekly foreign buying levels exceeded RM300mil.

The research house noted that foreign buying activity occurred on four out of five trading days last week.

“Global investors made a strong start to the week as they mopped up RM188.3m net of local equities on Monday.

“This was also the largest daily amount acquired during the week, coinciding with the KLCI adding 12.7 points as President Trump’s tweet expressed optimism on U.S-China relations which softened fears of a trade war,” MIDF said.

Foreign inflows slightly slowed down the next day to a tune of RM131.0mil net.

Wednesday then saw a decent net outflow of RM27.4mil amid escalated tensions over Syria which overshadowed the news of volume across Bursa exceeding four billion shares amid the timing of the 14th General Election which was made public on the day before.

Nonetheless, MIDF said foreign investors returned to Bursa on Thursday and Friday but at a marginal level of RM17.5mil and RM15.3mil net, respectively.

“It was noteworthy that Malaysia and Korea were the only markets among the seven Asian exchanges that we track to experience foreign inflows on Thursday and Friday,” MIDF said.

On a year-to-date basis, foreigners have so far accumulated RM2.85bil net of local equities.

Meanwhile, foreign investors have been net buyers in 12 out of the 15 weeks in 2018 compared to 13 weeks during the same period in 2017.

Both foreign and retail participation remained robust as both of their average daily trade value (ADTV) stood above the RM1bil level last week

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