Foreign buying stretches to 16 consecutive weeks

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KUALA LUMPUR: Concerns that inflow of foreign funds into local equity is dissipating should be neutralised as foreign investors continued to plough money into Bursa last week, according to MIDF Research. 
 
Foreigners acquired RM223.7mil net in the open market (excluding off market deals) last week, exceeding the RM192.4mil accumulated the week before. 
 
MIDF said although the amount was modest, the foreign buying streak has now stretched to 16 straight weeks.
 
“With three trading days left in May, foreign investors have mopped up RM1.57bil for the month, lifting the cumulative year-to-date number to just shy of RM10bil. 
 
“In May 2016, there was a massive outflow of RM4.27bil,” MIDF said. 
 
The research house noted that there was a bit of unease as foreign investors turned net sellers on Monday and Wednesday. 
 
However, the amount was marginal, and by Friday, foreign investors re-emerged strongly, buying at the highest pace in 11 days.
 
“This coincided with the ringgit appreciating to the highest level since November 9, which lifted sentiment that was earlier compromised by the slump in crude oil price,” it said. 
 
Foreign average daily trade value (ADTV) stayed above the RM1bil mark at RM1.06bil although it declined by 16% week-on-week.
 
Likewise, MIDF said the retail market remained vibrant as the ADTV stayed above RM1bil for the fifth week in a row at RM1.27bil.
 
Indeed, the RM1bil mark had been surpassed in 11 out of the last 12 weeks. Retail investors bought moderately for the second week running. 
 
Last week, Malayan Banking Bhd stocks were again the beneficiary of the highest net money inflow of RM79.39mil.
 
The second highest net money inflow was into Sime Darby which amounted to RM12.75mil while Genting Malaysia saw the third highest money inflow of RM10.19mil. 
 
Malaysia Airports Holdings Bhd saw the largest net money outflow
of RM15.51m last week. 
 
KL Kepong recorded the second largest net money outflow RM6.95mil while Dialog Group registered the third largest net money outflow at RM6.76mil during the week under review.