Offshore investors continued to enter Malaysia’s market for the second week, analysts observed in the latest fund flow report. — Bernama photo
KUCHING: Offshore investors continued to enter Malaysia’s market for the second week, analysts observed in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on data from Bursa Malaysia, international investors acquired RM69.9 million net of local equities during the holiday-shortened week compared to RM68.7 million net bought in the week before.
“In 2019, international funds were net buyers for a total of 18 weeks,” MIDF Research said.
“Bursa began the week on the right foot as international funds mopped up RM74.7 million net of local equities on Monday.
“As such, the local stock barometer was lifted higher by 0.3 per cent to close at 1,614.2 points, a level not observed since August 2019.”
MIDF Research highlighted that Christmas Eve then saw foreign investors retreating to the sidelines as they disposed local equities at a tune of RM19.6 million net, dragging the local bourse by 0.6 per cent to settle at 1,604.2 points.
It further highlighted that as markets reopened on Thursday, international funds continued to reduce exposure in local equities but at a very slow pace of only RM1.8 million net.
“The reduction in foreign net selling was mainly attributable to the news that the US and China will have a signing ceremony to commemorate the first phase of the US-China trade deal agreed this month.
“International funds later turned net buyers on Friday, snapping up RM16.6 million net of local equities following the rally in local plantation stocks in line with the rise in crude palm oil price.”
The research arm noted that with two more trading days before the month of December ends, the month has so far seen a foreign net outflow of RM1.06 billion.
As such, it observed that 2019 is set to be another year of foreign net outflow for Malaysia with the year-to-date foreign net outflow as of last Friday standing at RM10.99 billion, lower than last year’s total foreign net outflow of RM11.69 billion.
“In terms of participation during the festive week, it was no surprise that foreign investors experienced sharpest decline in average daily traded value (ADTV) amongst the other investor groups, dropping 61.4 per cent to reach below the RM1 billion mark at RM489.5 million.”
Overall, Public Bank Bhd registered the highest net money inflow of RM6.76 million last week, followed by KLCCP Stapled Group with the second highest net money inflow of RM2.36 million.
Serba Dinamik Holdings Bhd saw the third highest net money inflow of RM1.37 million.
On outflows, Malayan Banking Bhd saw the largest net money outflow of RM7.4 million last week.
Kuala Lumpur Kepong Bhd recorded the second largest net money outflow RM3.33 million during the week under review while Inari Amertron Bhd registered the third largest net money outflow of RM2.7 million.