BURSA BUCKS THE TREND: FOREIGN FUNDS FLOW IN DESPITE SHARP REGIONAL SELLOFF

KUALA LUMPUR – Foreign funds continued entering Malaysia despite the selloff in some regional peers notably Korea and Thailand, according to MIDF Research.

“For the week, foreign investors acquired RM151.2mil net in the open market excluding off market deals, half of the amount in the
week before,” MIDF said in its weekly fund flow report.

The research house noted that there was a bit of unease as international investors were selling at the start of the week. Nonetheless, it said the outflow was reversed by purchases from Tuesday to Thursday.

“We note that the foreign buying peaked on Wednesday following optimism on Wall Street boosted by Apple’s impressive 3Q17 earnings,” it said.

For the month of July, cumulative foreign net purchases amounted to RM420.9mil net, the second lowest monthly inflow for the year.

With seven consecutive months of foreign buying, the cumulative year-to-date inflow is nearing the RM11bil mark at RM10.8bil net.

This has offset approximately one third of the cumulative outflow from 2014-2016.

Foreign participation rate was vibrant. Foreign average daily trade value (ADTV) rose 11% from RM819mil in the prior week to RM895mil, hovering under RM1b level for the fifth week running.

Retail participation was also pretty active during the week. Retail ADTV increased by a substantial 37% from just RM648mil to above RM800mil for the first time in six weeks.

For the week ended Aug 4, CIMB stocks were the beneficiary of thehighest net money inflow of RM9.27mil.

The second highest net money inflow beneficiary was Genting, amounting to RM5.79mil while Maxis saw the third highest net money inflow of RM4.9mil.

British American Tobacco saw the largest net money outflow of RM14.56m last week.

Hong Leong Bank recorded the second largest net money outflow RM10.20m during the week under review.

Dialog Group, meanwhile, registered the third largest net money outflow at RM7.57mil.

– ANN

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