KUCHING: A tidal wave of sorts hit on Bursa Malaysia last week as foreign liquidity dominated trading on unbridled optimism towards the Malaysian market.
Foreign investors purchased a whopping RM1.76 billion net last week, an amount not seen since May 2013, following the outcome of the 13th General Election (GE13).
Analysts at MIDF Amanah Investment Bank Bhd (MIDF Research) said the last time the amount exceeded RM1 billion was in March last year.
“Foreign investors have now been net buyers on Bursa for six consecutive weeks. As of Friday, foreign net buying had extended for six trading days,” it detailled in a note yesterday.
“Notably, the average amount mopped per day during the six days was RM305 million. In March 2016, when trading on Bursa was this intense, the average amount mopped up was only RM264 million
“On Friday, the buying turned into a frenzy. Foreigners acquired a massive RM816 million – the highest since May 7, 2013 and also two days after the GE13.
“Foreign participation also surged to a level not seen since May 2013. The average daily trade value (ADTV) surged to RM1.69 billion, a 71 per cent increase compared with that in the preceding week.”
The return of foreign investors have accorded a much needed breathing space for local investors, said MIDF Research, to lighten their position and realise profi ts.
Local institutions offloaded RM1.58 billion net last week. Since beginning of the year, local fund managers have disposed RM2.80 billion net.
The retail market remained vibrant as retailers took advantage of the foreign liquidity avalanche to offload RM180m.
Retail ADTV surged to RM1.2 billion, second week in a row it exceeded RM1 billion.
Looking at the top net inflows, Tenaga Nasional Bhd registered the highest net money infl ow of RM6.73 million last week.
Meanwhile, AirAsia Bhd recorded the second highest net money infl ow of RM6.16 million.
The company announced that it had entered into a sale and purchase agreement with Caterhamjet Global Ltd to acquire the Bombardier BD-700-1A10 Global Express for USD10 million cash with a plan to operate charter and private unscheduled business jet operations.
UOA Development saw the third highest net money infl ow of RM5.81 million.
On the other end of the spectrum, banks dominated the top net money outflows as Malayan Banking Bhd saw the largest net money outflow of RM28.48 million last week, while Public Bank Bhd recorded RM27.42 million outflow and Hong Leong Bank Bhd registered the third largest outflow at RM12.6 million.