Back home, foreign investors continued to pump liquidity into stocks listed on Bursa Malaysia albeit at a tapered rate last week.
KUCHING: Equity markets around the world came to a standstill last week as investors turned nervy in anticipation of a tense meeting between US President Donald Trump and Chinese President Xi Jinping.
At the presidential meeting, both sides agreed to a 100-day plan for trade talks aimed at boosting US exports and narrowing the bilateral trade deficit. However, focus on the summit was eclipsed as the US fired missiles into Syria as a response to a deadly chemical attack in the country.
Back home, foreign investors continued to pump liquidity into stocks listed on Bursa Malaysia albeit at a tapered rate last week.
“Foreigners purchased RM645.3 million net in the open market (excluding off market deals), dipping below the RM1 billion mark after three weeks during which the net amount purchased averaged RM1.33 billion,” said MIDF Amanah Investment Bhd (MIDF Research) in its fund flow report yesterday.
“Net foreign purchases were recorded in four our five trading days. The buying peaked on Tuesday at RM337.2 million, the fourth highest in a day this year, coinciding with the recovery in crude oil price which closed above the US$54 per barrel level for the fi rst time since March 7 this year.
“On Thursday, the 19-day buying streak was snapped as foreigners offl oaded RM116.7 million net. Nevertheless, the deficit was more than offset the following day as foreign buying resumed on Friday.”
MIDF Research highlighted that it has now been nine straight weeks of foreign buying on Bursa during which RM6.1 billion made its way into Malaysian shores.
Year-to-date, the cumulative amount is slightly higher at RM6.39 billion. The research firm estimated that inflow this year has already offset the estimated net outflow of RM3.01 billion in 2016.
“Despite the tapering of purchases, foreign participation in Bursa in general remained high last week as it increased by 3.6 per cent,” it added. “Foreign average daily trade value (ADTV) was marginally higher at RM1.05 billion. Indeed, foreign trade exceeded RM1 billion per day from Wednesday to Friday.”
MIDF Research noted that the retail market remained vibrant as the retail ADTV soared to RM1.33 billion — 31 per cent higher than the week before, marking the fifth week it exceeded RM1 billion.
“In fact, it was the highest recorded since the week ended August 22, 2014,” it said.
Sime Darby Bhd registered the highest net money inflow of RM25.37 million last week, followed by CIMB Group with a money inflow of RM23.78 million and Nestle Bhd with RM20.98 million.
Meanwhile, Genting Malaysia Bhd saw the largest net money outflow of RM22.30 million last week. Its stock price outperformed the benchmark index with a 0.92 per cent gain.
“It is notable that the net money outflow amidst advancing share price indicates a sell on strength (SOS) stance among some investors,” MIDF Research observed.
KL Kepong Bhd recorded the second largest net money outflow of RM10.41 million during the week under review, followed by Telekom Malaysia Bhd with RM8.35 million outflow.