FOREIGNERS turned net buyers of equities on Bursa Malaysia, snapping six weeks of foreign net selling mainly on the back of improvements in the trade impasse between the US and China, MIDF Research says.
International funds bought RM72.9 mil worth of equities in the week ended Dec 20, MIDF says in a report on Dec 23. It said foreign investors sold RM85 mil worth of equities on Dec 16 on renewed concerns on the US-China trade deal.
However, foreigners began buying into the Malaysian market with a net purchase of RM130.7 mil on Dec 20, marking the largest foreign net buying in a day since the middle of November, lifting the barometer index above 1,600 points, partly aided by window-dressing activities.
MIDF says year to date, Bursa has experienced an outflow of RM11.06 bil which constituted 94.6% of last year’s total foreign outflow of RM11.69 bil.
In terms of participation, foreign investors witnessed the sharpest increase in average daily traded value (ADTV) amongst other investor groups, gaining 17.7% to reach RM1.027 bil.
For individual stocks, Public Bank Bhd recorded the highest weekly net money inflow of RM30.8 mil last week. Its share price increased by 4.76% for the week, outperforming the FBM KLCI which rose by 2.5%.
Top Glove Corp Bhd and Maybank Bhd were the second- and third-highest stocks in respect of money inflow with RM8.23 mil and RM7.31 mil respectively.
Inari Amertron Bhd was the stock with the highest outflow last week at RM10.56 mil. Malaysia Airports Holdings Bhd (MAHB) followed in second place with an outflow of RM7.06 mil. MIDF notes that MAHB’s share price which rose by 0.53% while the broader index increased by 2.5% may indicate a sell on strength (SOS) stance among investors.
Velesto Energy Bhd registered the third largest net money outflow of RM6.14 mil during the week. Its stock was 1.32% lower while the broader index rose by 2.5%. – Dec 23, 2019
