The open interest on crude palm oil options has climbed to more than 6,000 contracts earlier this year from negligible levels in 2015,
KUALA LUMPUR: Foreign investors returned to Bursa with the strongest inflow in 10 weeks, according to MIDF Research.
“Last week, foreigners bought RM733.4mil after they offloaded RM565.9m the week prior amid a three-day trading week. Foreigners’ participation rate remained relatively strong last week at RM921.36mil albeit lower than the RM1,214.63mil recorded the week before,” it noted in its weekly report.
The research house said there were net buyers in the last five trading days of the week after four days of net selling prior due to the short trading week.
Foreign investors bought RM16.3mil on Monday, RM34.7mil on Tuesday, RM45.2mil on Wednesday, RM49.6mil on Thursday and RM31.9mil on Friday.
MIDF said the increased buying on Thursday was mainly due attributed to strong crude palm oil (CPO) price, which hit RM2,909 per tonne - the highest in four years, benefitting listed plantations companies with upstream operations.
Ringgit was also the strongest in the week on Thursday at RM4.1095 against the US dollar.
“Year-to-date cumulative net foreign inflow was the highest in 18 weeks at RM2.544bil compared with RM1.81bil a week ago. In retrospect, foreigners had offloaded RM19.5bil in 2015 and RM6.9bil in 2014,” MIDF said.
On the other hand, local institutions turned net sellers during the week, offloading RM738.7mil. They sold for the latest five trading days after six days of net buying prior.
Retailers became net buyers two weeks in a row as they bought RM5.3mil last week and RM80.9mil the week prior.
Last week, Malayan Banking Bhd
(Maybank) registered the highest net money inflow of RM30.01mil. Its share price, however, underperformed the broader market as it ended lower by 2.17% while the FBM KLCI was up by 1.09% during the week under review.
Digi.com came in second with RM7.57mil net inflow while Petronas Gas recorded the third highest net money inflow of RM5.03mil.
Meanwhile, KL Kepong saw the largest net money outflow of RM16.31m last week and Public Bank came in second last week with a net outflow of RM15.75mil.
Genting registered the third largest net money outflow at RM8.45mil in the review week but its share price outperformed with a 5.41% gain last week.
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