KUCHING: Foreign funds purchase of equities on Bursa Malaysia slow down to RM196 million last week as compared to RM493.4 million recorded in the prior week ended February 17.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report yesterday said based on preliminary data from Bursa, foreign investors bought a net amount of RM196.0 million last week as compared to RM493.4 million the week before.
The research firm believed that foreign investors remained in the buying mode on Bursa but the intensity eased last week in tandem with regional lethargy.
It observed that except on last Monday, foreign investors were net buyers during the rest of the week ended February 24.
“Last Wednesday, the net amount bought rose to RM120.4 million, the 10th time the amount is exceeded the RM100 million this year.
“Year-to-February 24, foreign investors have mopped up RM1.3 billion worth of local equity which is significantly higher as compared with the corresponding first two months of 2014 and 2015.
“February is destined to be a surplus month as far as foreign trade is concerned.
“With one trading day left, foreign investors had already mopped up RM883.9 million for the month of February. This is more than double the RM418.8 million net inflow recorded in January,” MIDF Research said.
In contrast, the research firm observed foreign investors were net sellers in regional markets namely, Indonesia and the Philippines. Nevertheless, it noted the participation rate of foreign investor has decreased last week.
MIDF Research noted the foreign average daily trade value (ADTV) eased by 13 per cent.
Surprisingly, the revival of the retail market continued as the retail investor’s ADTV rose by 20 per cent to RM978 million.
MIDF Research pointed out that the amount was the highest ADTV since the last week of November 2015.
On another note, counters which received the most money inflow last week were Sime Darby Bhd, Public Bank Bhd, Genting Malaysia Bhd, IOI Corporation Bhd, KLCC Stapled Group, IJM Corporation Bhd, CIMB Group Holdings Bhd, Malaysia Airports Holdings Bhd, Tenaga Nasional Bhd and Yinson Holdings Bhd.