KUALA LUMPUR: Hospital operator and owner IHH Healthcare registered the highest net money inflow of RM21.13mil in the week ended March 4, according to MIDF Equities Research.
According to the research house on Monday, IHH’s share price underperformed the market benchmark with a -1.23% weekly decline. In comparison, the FBM KLCI advanced by 1.75% during the week under review.
“On this score, it is notable that net money inflow amidst retreating share price may indicate buy on weakness (BOW) stance among some investors. The company recently reported higher FY15 core earnings of RM899mil (+14.9% on-year),” it said.
MIDF Research said Malayan Banking came in second with RM16.66mil net inflow. Accordingly, its share price outperformed the market benchmark with a 2.58% week-on-week gain.
“In an arguably a watershed development, the group announced that it provided more Islamic loans than conventional financing in Malaysia for the first time last year,” it said.
As for Petronas Gas, the company recorded the third highest net money inflow of RM15.82mil but its share price under performed the market benchmark as it ended merely 0.63% higher during the review week.
However, low-cost carrier AirAsia saw the largest net money outflow of –RM16.72mil during the review week.
AirAsia’s stock price massively outperformed the KLCI as it ended the week higher by a whopping 24.46% against a much smaller 1.75% gain in the market benchmark.
“On this score, it is notable that net money outfl ow amidst advancing share price indicates sell on strength (SOS) stance among some investors,” it pointed out.
Top Glove Corp came in second last week with a net outflow of –RM4.82mil. Its share price under performed the market benchmark as it recorded a -3.06% weekly decline. The strengthening of Ringgit against US Dollar to 3.11 is seen as negative to exporters like Top Glove.
SapuraKencana registered the third largest net money outfl ow at –RM4.56m in the review week.
“However, its share price outperformed the market benchmark with a 7.18% weekly gain which may indicate SOS stance among some investors,” it said.
MIDF Research pointed out that amid the volatile market, foreign investors made a roaring comeback on Bursa last week, after what appeared to be restrained buying in the fortnight prior.
Last week, foreigners bought listed equities amounted to RM972.2mil net on Bursa, more than triple that in each of the preceding two weeks. This is estimated based on transactions in the open market and excluded off market deals.
The bulk of the purchases came in the latter half of the week as foreign investors bought more than RM300mil a day on Wednesday till Friday.
“Last week’s foreign purchases swung the cumulative year-to-date fl ow-of-fund fi gures into the positive region, with a net surplus of RM567.4mil. For the entire 2015, the net outfl ow was -RM19.5bil,” it said.
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