KUALA LUMPUR – There was an influx of foreign liquidity into Bursa last week despite it being a 4-day trading week, according to MIDF Research.
The research house foreign purchase of equity listed in the open market (excluding off market deals) surged to RM1.45bil net, the second highest in a week this year and five times more than that the week before.
“Foreign buying on Bursa has now stretched for 12 consecutive weeks, the longest since the 24-week buying streak which ended in May 2013, the month of the last General Election,” MIDF said in its weekly fund flow report.
The research house said most foreign buying occured on Tuesday and Friday when the amount reached RM415.2mil and RM405.8mil net respectively.
In the first four months of 2017, the inflow has exceeded RM400mil on five different days.
In comparison, MIDF said the day-count was eight in 2013, two in 2014, one in 2015 and five in 2016.
“For the month of April, the cumulative foreign net purchases amounted to RM2.62bil. That was slightly more than half the cumulative inflow in March 2017 which amounted to RM4.70bil,” MIDF said.
The research house noted that foreign participation on Bursa bounced strongly last week to an elevated level.
It said foreign average daily trade value (ADTV) was up by 56% to RM1.34bil.
Indeed, the foreign daily trade value was above RM1bil for every single day of the week.
Retail participation has started to recover as the ADTV increased by 25% to RM1.10bil.
However, retailers are still on “take-profit” mode, selling for 10 weeks in a row.
Last week, Genting Malaysia stocks were the beneficiary of the highest net money inflow of RM16.51mil. Its share price decreased by 1.84%,underperforming against the FBM KLCI which increased by 0.68% during the week under review.
On this score, it is notable that the net inflow amidst declining share price indicates a buy on weakness (BOW) stance among some investors.
The second highest net money inflow was into UMW Holdings amounted to RM10.62mil while Bintulu Port saw the third highest net money inflow of RM6.09mil.
Maybank saw the largest net money outflow of RM28.68mil last week. Its stock price outperformed the benchmark index with a 1.91% gain.
On this score, it is notable that the net outflow amidst declining share price indicates a sell-on-strength (SOS) stance among some investors.
AirAsia recorded the second largest net money outflow of RM20.11mil during the week and Petronas Chemicals registered the third largest net money outflow at RM13.87mil.
Meanwhile, MIDF said the ringgit maintained its upward momentum by closing at US dollar RM4.3410, 1.32% higher than the week before, extending its third week of gains.
It noted that the the KLCI recorded its second week of gains by closing at 1,768 points on Friday, the highest in almost two years.