Foreign investors net buyers on Bursa for fourth week

16 July 2019

Source: Borneo Post KK & Kuching


KUALA LUMPUR:Foreign investors remained net buyers of stocks listed on Bursa Malaysia for its fourth consecutive week albeit at a slower pace, analysts said in the latest fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on data from Bursa, foreign fund s acquired RM84. 9 million net of local equities last week.

"It was a slow start to the week as offshore fund s only snapped up RM15. 9 million net of local equities on Monday,"MIDF Research said.

"Sentiment on Monday was moderated by increasing uncertainty over the outcome of the upcoming Federal Reserve policy meeting as latest US payroll report signalled that the American economy remains on track.

"Despite the drag on Monday,Malaysia bucked the trend as other regional peers namely South Korea,Taiwan,Thailand,India, the Philippines and Indonesia experienced foreign net outflows."

MIDF Research highlighted that Tuesday then saw a spike of foreign net buying which reached RM104.6 million net, the highest during the week,coinciding with Bank Negara Malaysia's decision to keep the benchmark interest rate unchanged.

"The level of foreign net inflows tapered by more tha n half on Wednesday and Thursday to RM42.5 million and RM51.2 million as international funds moved to the sidelines, awaiting clues about interest rated direction from Federal Reserve Chairman Jerome Powell's congressional testimony.

"The four-day buying streak was snapped on Friday as foreign fund s offloaded RM129.3 million net. Much of the selling activity was spurred by the potential earnings dilution of CIMB Group Holdings Bhd (CIMB) following the proposed issuance of exchangeable bonds by Khazanah Nasional."

MIDF Research further highlighted tha t last week's foreign net inflow brings the year-to-date foreign netoutflow from Malaysia toRM4.35 billion.

In contrast, the other six Asian markets the research arm monitored (Korea,Thailand, Indonesia, India, Taiwan and th e Philippines) have seen a foreign net inflow so far for the year with India being the largest.

"Strong participation was only seen amongst foreign investors which recorded a 10.6 percent increase in average daily traded value (ADTV) to RM985.9 million, nearing the healthy level of RMi billion."

Overall, Public Bank Bhd registered the highest net money inflow of RM22.89m last week, followed by CIMB with th e second highest net money inflow of RM18.59 million.

Hong Leong Financial Group Bhd saw the third highest net money inflow of RM8.64 million.

As for outflows, Malayan Banking Bhd saw th e largest net money outflow of RM8.37 million last week.

Dialog Group Bhd recorded the second largest net money outflow RM5.76 million during the week under review while MISC Bhd registered the third largest net money outflow of RM5.64 million.