Foreign tide-in marginal at RM49m last week

PETALING JAYA – Foreign tide-in to Bursa Malaysia was marginal last week, as foreigners on net bought RM49.4 million, down from RM501.5 million the week prior.

“The fatigue in foreign net inflow was arguably due to foreigners’ anxiety on the uncertainty surrounding US monetary policy,” MIDF Research said in its fund flow report yesterday.

Pursuant to the marginal inflow, foreign net buying on Bursa has been extended for the eighth week. The estimated fund flow excludes off-market transactions.

Investors classified as “foreigners” were net sellers on Tuesday (RM31.4 million), Wednesday (RM31.4 million) and Friday (RM5.9 million) and were net buyers on Monday (RM53.5 million) and Thursday (RM64.6 million).

“Buying activities among foreigners were much weaker as recent Fed officials’ comments on the timing of US rate hike have potentially kept foreign investors on hold. They were also digesting numbers as companies announcing their earnings during the quarterly financial reporting season,” said MIDF.

As of last Friday, the year-to-date cumulative net foreign inflow into shares listed on Bursa has breached the RM2.5 billion level at RM2.54 billion, up marginally from RM2.49 billion in the preceding week. In retrospect, foreigners had offloaded RM19.5 billion in 2015 and RM6.9 billion in 2014.

MIDF added that foreign participation rate had deteriorated further last week. It dipped to RM659 million from RM774.9 million a week ago. It was the first time it dropped below the RM700 million level so far this year. Meanwhile, it has been staying below the RM1 billion mark 11 times in the past 12 weeks.

Local institutions were net sellers for the eighth successive week offloading RM102.8 million. However, selling has abated compared with RM558.5 million in the previous week. Meanwhile, participation rate declined slightly to RM2.02 billion from RM2.4 billion week-on-week.

It said retail buyers continued to be net buyers on Bursa for the second week. They bought RM53.4 million last week, after a net buying of RM57 million the week before.

Meanwhile, their participation rate dwindled significantly to RM624.6 million from RM812 million the week prior. – Sundaily