Foreign net buying on Bursa enters 11th week in a row

PETALING JAYA: Foreign buying momentum on Bursa Malaysia continued for the 11th consecutive week, despite the tapering of purchases compared with the recent weeks, according to MIDF Research.
In its fund flow report yesterday, the research house said foreign purchase of equity listed in the open market (excluding off market deals) amounted to a net of RM283 million against RM239 million the week before.
“Most foreign buying occurred on Friday when the amount reached RM144.9 million net. The influx of foreign buying coincided with the KLCI reaching a 22-month high as sentiment was boosted by a possible tax reform by Trump, to be announced today,” it said.
Year to date, the cumulative foreign net purchases amounted to RM6.91 billion, the highest among regional peers namely Thailand, Indonesia and the Philippines.
MIDF Research said foreign participation on Bursa Malaysia bounced last week but remained at a moderate level, adding that foreign average daily trade value (ADTV) was up by 16% to RM860.4 million.
Nevertheless, the research house said retail participation had started to taper as the ADTV declined by 20.2% to RM881.4 million, the first time it fell below RM1 billion in six weeks.
“There was heavy profit taking by retail investors last week. The amount offloaded of RM187.6 million was the highest in a week this year,” it said.