Foreign buying on Bursa Malaysia picks up steam

KUALA LUMPUR: Despite the festive week, offshore funds continued scooping up stocks listed on Bursa for the second week at a stronger pace, according to MIDF Research.

“Based on data from Bursa, foreign funds mopped up RM350mil net of local equities last week, seven times more compared to the amount acquired in the week before,” the research house said in its weekly fund flow report.

“The weekly foreign inflow seen in Malaysia was in conformity with the majority of the other six Asian markets we monitor with the exception of South Korea and the Philippines,” it added.

MIDF said Bursa started the week off on the right foot as international investors acquired RM231.5mil net of local equities on Monday, marking the second day of foreign net inflows above RM200mil.

The strong momentum of foreign net buying lifted the FBM KLCI by 0.2% to settle at 1,655 points on the same day, the highest close seen since March 22.

Much of the optimism on Monday was mainly attributable to the recently concluded corporate earnings season which had a lot of positive surprises.

“Foreign funds still made their way to Bursa on Tuesday, a day before the two-day Hari Raya Aidilfitri holidays, snapping up RM96.8mil net of local stocks,” MIDF said.

As the local bourse reopened from the two-day break on Friday, international funds still acquired local equities albeit at a slower pace of RM21.8mil net.

“Last week’s commendable foreign net inflow of RM350mil net has decreased the year-to-date foreign net outflow from Malaysia to RM4.45bil from RM4.80bil in the preceding week,” MIDF said.

The research house said the drop in investor participation for the retail market, foreign investors and local institutional funds during the holiday-shortened week was inevitable.

Nevertheless, the average daily trading value (ADTV) for foreign investors remained healthy at above RM1bil despite the 54% weekly decline in the ADTV.

Only the retail market had a substantially low weekly ADTV of below RM500mil, the lowest so far for the year.

Last week, Tenaga Nasional Bhd registered the highest net money inflow of RM4.69mil.

KLCCP Stapled Group Bhd recorded the second highest net money inflow of RM3.68mil while Malayan Banking Bhd saw the third highest net money inflow of RM3.01mil.

On the other hand, CIMB Group Holdings Bhd saw the largest net money outflow of RM16.33mil last week.

Petronas Gas Bhd recorded the second largest net money outflow RM5.60mil and IHH Healthcare Bhd registered the third largest net money outflow of RM5.34mil.  

Markets , Bursa , MIDF , fund flow