KUCHING: The purchase of equities by foreign investors on Bursa Malaysia moderated to RM31.2 million for the week ended July 22 as compared to RM764.2 million for the week ended July 15.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report yesterday said the net amount purchased by foreign investors dropped to a marginal RM31.2 million from RM764.2 million in the prior week.
MIDF Research said, “Foreigners were net buyers on Bursa on the first two trading days (July 18 and 19), and turned net sellers Wednesday (July 20) onward.
“We note that the foreign buying momentum in the preceding week was carried forward when Bursa commenced on Monday as foreign investors loaded up RM167.6 million (worth of shares), with the buying pace moderated to RM65.6 million on Tuesday.
“However, Wednesday (July 20) appeared as the turning point of the week as foreigners turned net seller after seven successive days of net purchases.
“They sold RM45.4 million (worth of shares) on that day. Selling pressure ticked up on the following day as foreigners sold another RM76.3 million.
“The selling pace persisted into Friday (July 22) as foreign investors reduced their holding on Bursa by another RM80.3 million.
“The cumulative net foreign inflow thus far this year into shares listed on Bursa was little changed,” the research firm said.
As of last Friday, the cumulative flow of money into Bursa Malaysia edged up slightly to an estimated amount of RM853.8 million from an estimated amount of RM822.6 million in the prior week.
However, it observed that foreigner investors has sold RM19.5 billion worth of shares in 2015 and disposed off RM6.9 billion worth of equities in 2014 respectively.
On another note, the research firm said the rate of participation of foreign investors for the week ended July 22 was not significant.
It noted their participation rate dropped by RM269 million to RM824.4 million from the prior week’s of RM1.09 billion.
MIDF Research observed that it was the sixth time in the past seven weeks that their participation has stayed below the RM1 billion level.
Additionally, the research firm noted the participation by local institutional funds was negligible, selling RM0.5 million worth of shares after offloading RM702.5 million worth of equities in the prior week.
It noted their participation rate retreated below the RM2 billion level to RM1.93 billion – down from RM2.1 billion from the week ended July 15.
Moreover, MIDF Research noted retail investors continued to be net sellers on Bursa Malaysia last week, extending their selling trend to the fifth consecutive week.
Nonetheless, it observed that their selling magnitude moderated to RM30.7 million as compared with RM61.4 million in the prior week ended July 15.
MIDF Research noted their participation rate improved further to RM606.3 million, a marginal increase from previous week’s of RM541.4 million.
The 10 counters with the highest funds inflow last week were Sime Darby Bhd, Petronas Gas Bhd, Bumi Armada Bhd, Top Glove Corporation Bhd, Petronas Dagangan Bhd, British American Tobacco (Malaysia) Bhd, Maxis Bhd, SapuraKencana Petroleum Bhd, Hong Leong Financial Group Bhd and CIMB Group Holdings Bhd.