Bursa Malaysia sees strongest foreign inflow in 10 weeks

PETALING JAYA: Foreign investors returned to Bursa Malaysia with the strongest inflow in 10 weeks as they bought RM733.4 million last week, after offloading RM565.9 million the week prior amid a three-day trading week.
MIDF Research said foreigners’ participation rate remained relatively strong last week at RM921.36 million, albeit lower than the RM1.21 billion recorded the week before.
They were net buyers in the last five trading days of the week after four days of net selling prior due to the short trading week. They bought RM16.3 million on Monday, RM34.7 million on Tuesday, RM45.2 million on Wednesday, RM49.6 million on Thursday and RM31.9 million on Friday.
“The increased buying on Thursday was mainly attributed to strong CPO price, which hit RM2,909 per tonne – the highest in four years. That benefits listed plantation companies with upstream operations the most. Ringgit was also the strongest in the week on Thursday at USD/RM4.11,” MIDF said in its fund flow report yesterday.
Year-to-date cumulative net foreign inflow was the highest in 18 weeks at RM2.54 billion compared with RM1.81 billion a week ago. In retrospect, foreigners had offloaded RM19.5 billion in 2015 and RM6.9 billion in 2014.
Participation rate from both local funds and retailers improved to RM2.14 billion (from RM2.03 billion the week before) and RM624.6 million (from RM518.9 million) respectively.
Local institutions turned net sellers during the week, offloading RM738.7 million. On a weekly basis, they were net buyers for three successive weeks before last week. The selling by local funds last week was the heaviest since April.
Retailers became net buyers two weeks in a row as they bought RM5.3 million last week and RM80.9 million the week prior. They bought RM1.56 billion last week, the highest in four weeks.
On the flipside, the selling last week was the highest in five weeks at RM1.56 billion. Retailers were net buyers ahead of the US Fed meeting and took profits on Thursday and Friday.