Offshore investors up ante in acquiring stocks on Bursa

02 July 2019

Source: Borneo Post (Kuching)


KUCHING: Offshore investors upped the ante in acquiring stocks listed on Bursa Malaysia last week.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on data from Bursa, foreign funds acquired RM171.7 million net of local equities last week, six times more than the amount bought in the week before.

"The first two days of the week saw international funds selling equity on Bursa but at a moderate level below RM25 million net," MIDF Research said.

"Risk aversion was stoked by Iran's comments that there is no more room for a diplomatic solution with the US following the imposition of new sanctions."

"International investors on Wednesday made a commendable return as they bought RM73.1 million net of local equities despite comments of Federal Reserve Bank of St Louis which downplayed the need for aggressive US monetary easing."

Meanwhile, MIDF Research noted that on Thursday, the level of foreign net buying tapered slightly to RM53.8 million.

The research arm further noted that the dampened sentiment came from the news that substantial additional tariffs would be placed on goods on China by the US if no progress is made on a trade deal when both sides meet at the G20 meeting.

"Bursa saw the highest foreign net inflow during the week of RM83.7 million on Friday ahead of the highly anticipated US-China presidential meeting on Saturday.

"This was in contrast to other regional peers namely,Thailand, the Philippines and Taiwan which experienced foreign net outflows exceeding RM40 million."

MIDF Research highlighted that for the month of June 2019, foreign investors have acquired RM134.6 million net,the first foreign net inflow in five months.

It also highlighted that on a half yearly basis, the foreign net outflow from Malaysia stands at RM4.66 billion which is lower than the RM6.8 billion foreign net outflow seen during the same period last year.

"While foreign investors continued entering Bursa,foreign investors emerged as the investor group with the largest decline in terms of average daily traded value(ADTV) of 28.6 per cent to RM1.03 billion.

"Nevertheless, level of participation in three weeks is still deemed healthy as it exceeds RMi billion."

Overall, Malaysia Airports Holdings Bhd registered the highest net money inflow of RM25.61 million last week followed by CIMB Group Holdings Bhd with the second highest net money inflow of RM11.68 million.

Malayan Banking Bhd saw the third highest net money inflow of RM11.2 million.

On outflows, Telekom Malaysia Bhd saw the largest net money outflow of RM10.5 million last week.

Petronas Chemicals Group Bhd recorded the second largest net money outflow RM10.08 million during the week under review while Dialog Group Bhd registered the third largest net money outflow of RM7.02 million.