Foreign buying peaked with a Retail participation rate remained vibrant has foreign funds withdrew RM227.5 million

Malaysia: Foreign funds slowly added their holdings in stocks listed on Bursa Malaysia after a week filled with major news affecting global capital markets, said MIDF Research in a note.

Based on preliminary data from Bursa Malaysia which excluded off market deals, the net amount acquired by foreign investors last week amounted to RM141.2 million net, cancelling almost half of the RM299.1m net sold in the preceding week.

Foreign buying peaked on Monday at RM279.3 million net, the highest net inflow in a day since January 23, 2018 which led to FBM KLCI’s biggest daily gain in 15 trading days of 0.94 per cent.

“Sentiment on that day was buoyed by receding fears over quicker US rate hikes this year amid the increase in jobs coupled with a slowdown in wage growth,” it said.

MIDF said the FBMKLCI gained 0.15 per cent to 1,864 points the next day with a smaller inflow of RM122.9 million.

However, it said markets on Wednesday negatively affected by President Trump’s decision to oust Rex Tillerson.

“The political turmoil in the US prompted investors to shift to safe-haven assets, resulting in a daily attrition of RM11.5 million,” it said.

MIDF said foreigners then disposed RM22 million net on Thursday amid concerns of the US-China trade spat, coinciding with the FBMKLCI’s settling at the lowest point during the week at 1,845 points.

Foreign selling further intensified on Friday as foreign funds withdrew RM227.5 million net ahead of the US Federal Reserve’s monetary policy meeting this week.

On a year-to-date basis, MIDF said foreigners have accumulated RM2.05 billion worth of local equities.

Meanwhile, it said March has so far recorded a net outflow of RM207.4 million, a far cry from the RM4.37 billion net inflow in March 2017 amid the anticipation of the 14th General Election.

MIDF said foreign average daily trade value (ADTV) increased by 46 per cent to RM1.64 billion, marking its 11th week of staying above RM1 billion.

“Retail participation rate remained vibrant too with its ADTV remaining above RM1 billion for the fourth consecutive week,” it said.

Tenaga Nasional Bhd recorded the highest net money inflow of RM10.41 million last week, followed by Hong Leong Bank Bhd (RM6.76 million) and Malaysia Airports Holdings Bhd (RM5.36 million).

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