KUCHING: Foreign investors sold a net amount of RM136.2 million worth of equities on Bursa Malaysia on a shortened trading week ending February 3.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) yesterday observed that foreign investors’ conviction in the local equity remained unpredictable as international fund managers sold a net amount of RM136.2 million in three days of trading last week, based on preliminary data from Bursa which excluded off-market trades.
The pattern of foreign trade on Bursa this year has been quite distinctive, it said, in a sense that buying has been lumpy and intermittent while selling has been marginal but persistent.
“Last week, foreign investors were net sellers every day of trading. Foreign investors had been selling in five out of the last six trading days. Yet, foreign funds have mopped up RM315.7 million of local equity this year, until last Friday,” MIDF Research observed in a note yesterday.
The research firm added that the FBM KLCI rose by 11.53 points to 1,685.01 points last Friday but noted the push was not from outsiders. For the month of January, MIDF Research saw that foreign investors bought RM419 million worth of equities, the first surplus recorded in five months.
The strong buying was also the first net inflow of foreign funds on Bursa in the month of January in four years’ time. The research firm recalled that the last January month in which net foreign flow was in favour of Bursa was in 2013, the year of the last General Election. In that year, MIDF Research noted the FBM KLCI rose by 10.5 per cent.
In the meantime, the research firm opined that a positive takeway from last week was that foreign investors were still trading Malaysian equity. It pointed out that foreign investors’ participation rate surged to its highest level this year as the average daily trade value (ADTV) increased by 45 per cent.
Meanwhile, MIDF Research said the retail market appeared to be waking up as retail investors turned weekly buyers last week for the first time this year on a 38 per cent surge in ADTV.
The 10 companies with the highest funds inflow for the week ended February 3 were Petronas Gas Bhd, Public Bank Bhd, British American Tobacco Bhd, CIMB Group Holdings Bhd, Genting Bhd, KLCC Property Group Bhd, AirAsia Bhd, Hong Leong Bank Bhd, AMMB Holdings Bhd, and Telekom Malaysia Bhd.