Foreign funds mop up RM764.2 million equities on Bursa M’sia

KUCHING: Foreign funds made a gradual return to Bursa Malaysia for the week ended July 15 with a net purchases of RM764.2 million worth of shares on the stock exchange.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report yesterday said the net inflow of funds marked the second consecutive week of foreign investors buying up shares on Bursa Malaysia after 10 weeks of continuous disposal in the past.

The research firm observed that the net amount purchased by foreign investors for the week ended July 15 increased significantly to RM764.2 million from RM93.5 million for the week ended July 8.

MIDF Research noted that the inflow of money was the biggest weekly net inflow in more than three months.

Elaborating further, the research firm said foreign investors were net buyers on every trading day last week.

The research firm observed that they have been buying in nine out of the 11 trading days as of July 15.

“We note that the attrition in the preceding Friday (July 8) was transient, as foreign investors increased their holding with RM39.6 million when Bursa commenced on Monday, with the buying ticked up slightly to RM45.3 million on the following day.

“BNM’s Wednesday overnight policy rate (OPR) cut was arguably the catalyst of the week, as foreigners stepped up their purchase to a substantial RM293.1 million.

“The pace cooled down slightly to RM137.2 million on Thursday (July 14), but regained its momentum on Friday (July 15) with foreigners loading up another RM249 million.

“The cumulative net foreign fund flow thus far this year into shares listed on Bursa improved considerably after last week’s robust inflow.

“As of last Friday (July 15), the cumulative flow into Bursa has moved further away from the negative territory to an estimated RM822.6 million, up from RM58.4 million the week prior,” the research firm said.

In retrospect, MIDF Research noted foreign investors had disposed off RM19.5 billion worth of shares in 2015 and RM6.9 billion worth of equities in 2014 respectively.

On another note, the research firm said foreign investor’s participation rate last week continued to improve, edging up to RM1.09 billion from prior week’s RM906.5 million.

It noted that it was the first time their participation rate rose above the RM1 billion level in the past six weeks.

In the meantime, MIDF Research said local institution funds were net seller on Bursa for the second straight week ended July 15 by selling RM702.5 million worth of shares.

The research firm noted their participation rate rose above the RM2 billion level to RM2.1 billion from prior week’s RM1.4 billion.

Additionally, MIDF Research said retail investors resumed their selling of shares after returned from the Hari Raya holidays.

Retail investors sold approximately RM61.4 million worth of equities on Bursa last week, their fourth straight week of selling.

Meanwhile, MIDF Research said their participation rate improved to RM541.4 million, after previous week’s tepid trading of RM384.8 million.

Listed companies with the most inflow of funds for the week were Malayan Banking Bhd, Tenaga Nasional Bhd, CIMB Group Holdings Bhd, Public Bank Bhd, British American Tobacco Bhd, Bumi Armada Bhd, Bursa Malaysia Bhd, IOI Corporation Bhd, Maxis Bhd and United Plantations Bhd.

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