GLOBAL markets ended last week mixed amidst the latest surge in Covid-19 cases following China’s revision of the method for counting infections.

Brent crude oil advanced 5.2% for the week to settle at US$57.32 per barrel, snapping the five-week losing streak. The support came from amid reports that China’s smaller, independent refineries were buying some crude following the perceived crash in Chinese energy consumption arising from the Covid-19 outbreak.

MIDF Research analyst Adam M Rahim said: “International investors continued to show interest in Asian markets as they bought Asian equities for the second week but at a smaller quantum. Based on the provisional aggregate data for the seven Asian exchanges (Thailand, Indonesia, the Philippines, Korea, Taiwan, India and Malaysia) that we track, investors classified as “foreign” acquired US$363.1 mil net last week compared to the US$2.43 bil net accumulated in the week before.”

International funds entered Bursa at a moderate pace last week. Based on data from Bursa, they mopped up RM70.3 mil net of local equities last week, snapping the foreign net selling seen in the previous two weeks.

The FBM KLCI was back in the red after declining 0.7% for the week to settle at 1,544.5 points. On the other hand the ringgit appreciated by less than 1% against the greenback to reach US$/RM4.138 during the week.

Tenaga Nasional Bhd saw the highest net money inflow of RM9.45 mil. Its share price was 0.47% lower during the week, outperforming the local bourse which was -0.65% lower.

MISC Bhd registered the second highest net money inflow of RM8.56 mil last week while Malayan Banking Bhd (MBB) recorded the third highest net money inflow of RM7.56 mil.

MISC’s share price declined -1.22% for the week, underperforming the local bourse which had a -0.65% weekly drop.

MBB’s share price was -0.47% lower, outperforming the local bourse which had a -0.65% weekly loss. Nonetheless, it is notable that net money inflow amidst retreating share price may indicate a buy on weakness (BOW) stance among some investors.

On the other hand, Hartalega Holdings Bhd registered the third-largest net money outflow of -RM8.46 mil in the review week. Its share price was 6.38% higher, outperforming the local benchmark which was -0.65% lower for the week.

Top Glove Corporation Bhd saw the second-largest net money outflow of -RM6.68 mil last week. The stock was 3.36% higher for the week, outperforming vis-à-vis the FBM KLCI which lost -0.65%. It is notable that the net money outflow amidst advancing share price may indicate a sell on strength (SOS) stance among some investors.

AirAsia Group Bhd recorded the third-largest net money outflow of -RM4.01 mil during the week under review. Its share price was -8.40% lower during the week, underperforming the market benchmark. – Feb 17, 2020

 

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