Foreign funds net buyers on Bursa for ninth week running

PETALING JAYA: Foreign investors continued to pump liquidity into Bursa Malaysia last week, albeit at a tapered rate, said MIDF Research.
Foreigners purchased a net RM645.3 million worth of stocks in the open market (excluding off-market deals), falling below the RM1 billion mark after three weeks during which the net amount bought averaged RM1.33 billion.
The research house said net foreign purchases were recorded in four trading days last week.
“The buying peaked on Tuesday at RM337.2 million, the fourth highest in a day this year, coinciding with the recovery in crude oil price which closed above the US$54 per barrel level for the first time since March 7, 2017.
“On Thursday, the 19-day buying streak was snapped as foreigners offloaded RM116.7 million net. Nevertheless, the deficit was more than offset the following day as foreign buying resumed on Friday,” it noted.
MIDF Research said it has now been nine straight weeks of foreign buying on Bursa Malaysia during which RM6.1 billion made its way to Malaysian shores.
Year to date, the cumulative amount is slightly higher at RM6.39 billion. The inflow this year has already offset the estimated net outflow of RM3.01 billion in 2016.
MIDF Research stressed that despite the tapering of purchases, foreign participation in Bursa in general remained high last week as it increased by 3.6%.
“Foreign average daily trade value (ADTV) was marginally higher at RM1.05 billion. Indeed, foreign trade exceeded RM1 billion per day from Wednesday to Friday,” it said.
Meanwhile, the retail market remained vibrant as the retail ADTV jumped to RM1.33 billion, 31% higher than the week before, marking the fifth week it exceeded RM1 billion, the highest recorded since the week ended Aug 22, 2014.