KUALA LUMPUR – Foreign buying on Bursa Malaysia fell to RM192.4mil in the week ended May 19, which was the lowest in 11 weeks, according to MIDF Research.

It said on Monday, foreign buying was at a tapered rate last week amid the political turmoil in the US and Brazil.

“Still, the buying streak by foreign investors have now stretched for 15 straight weeks, edging closer towards the 24-week buying spree which started in December 2012 and ended in May 2013,” it said.

However, retailers turned net buyers in the week at RM38.5mil – the second week in three – while local institutions were net sellers at RM230.9mil.
MIDF Research said despite lower foreign net add, participation remained elevated. Foreign average daily trade value (ADTV) jumped 27% to RM1.26bil, the third highest this year.

“Retailers took advantage of the market consolidation as they turned net buyers, albeit modestly at RM38.5mil. The retail market remained healthy as participation rate stayed above RM1bil at RM1.39bil, 17.8% higher than that the week before.

“This is the tenth week this year that retail participation has exceeded the RM1bil mark,” it said.

The research house pointed out Maybank stocks were the beneficiary of the highest net money inflow of RM9.29mil last week. However, its share price fell -0.32%, outperforming against the FBM KLCI which declined by -0.43% during the week under review.

“On this score, it is notable that the net inflow amidst declining share price indicates a buy on weakness stance among some investors,” it said.

The second highest net money inflow was into MY EG Services which amounted to RM9.20mil. Its share price underperformed the benchmark index with a -6.55% loss during the review week.

MIDF Research said Sime Darby saw the largest net money outflow of -RM22.83mil last week. Its stock price outperformed the benchmark index with a -0.21% loss.

The conglomerate announced that it plans to dispose subsidiaries that import and distribute Peugeot, Citroen and DS brands in Australia and New Zealand.

Power giant Tenaga Nasional recorded the second largest net money outflow -RM20.13mil during the week under review. Its share price outperformed the benchmark index with a 0.36% gain.

The net outflow amidst declining share price indicates a sell-on-strength stance among some investors.