Foreign investors return to Bursa Malaysia

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KUCHING: Foreign investors resumed their buying spree on Bursa Malaysia for the second consecutive week this year with a net purchase of RM382.8 million worth of shares for the week ended January 13.

The amount recorded last week was higher than the RM101.8 million of funds inflow recorded in the first week of the year ended January 6.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) yesterday said foreign investors were making a comeback to the Malaysian equity market, although it was still early days.

“Based on preliminary data from Bursa, foreign investors mopped up RM382.8 million net last week, the highest since the third week of September 2016,” it said in a note yesterday.

“Stronger economic data coming out since the new year showed that the Malaysian economy remained stable.

“These include stronger exports and growth in retail sales, for instance nine per cent year-on-year and the industrial production index for November 2016 which rose by 6.2 per cent y-o-y.”

Meanwhile, MIDF Research saw that foreign investors were marginal net sellers as the market opened on last Monday and Tuesday.

“The selling ended abruptly on last Wednesday as foreign investors turned net purchasers at RM130 million,” it added.

“The inflow peaked on last Thursday as foreigners bought RM226 million, the highest since October 18, 2016. It receded on last Friday, in line with the regional trend,” the research firm observed.

There was a strong increase in foreign participation last week as MIDF Research observed that foreign average daily traded value (ADTV) rose to RM848 million, an increase of 40 per cent as compared with the prior week ended January 6. It noted the rate was near last year’s average participation of RM957 million.

On another note, the research firm observed that local institutional funds  took the opportunity of foreign buying to clear some of their positions.

Apart from that, MIDF Research noted that retail investors were also  active, with the participation rate recorded at the highest level since August.