Foreign trades on Bursa last week hit 2017 high

PETALING JAYA: Last week, foreign participation rate surged to its highest level this year as the average daily trade value (ADTV) rose 45% while retail investors turned weekly buyers for the first time this year on a 38% surge in ADTV.
However, despite the KLCI rising 11.5 points last Friday, the push was not from outsiders, said MIDF Research.
“Foreign conviction in local equity remained unpredictable as international fund managers sold a net RM136.2 million in three days of trading last week, based on preliminary data from Bursa, which excluded off-market trades,” it said in its fund flow report yesterday.
It noted the distinctive pattern of foreign trade on Bursa this year; the buying has been lumpy and intermittent while the selling has been marginal but persistent.
“Last week, foreign investors were net sellers every day of trading. Foreigners had been selling in five out of the last six trading days. Yet, foreigners have mopped up RM315.7 million of local equity this year, until last Friday,” it said.
For the month of January, foreign investors bought RM419 million, the first surplus recorded in five months. It was also the first net inflow of foreign funds on Bursa in the month of January in four years.
The last January month in which net foreign flow was in favour of Bursa was 2013, the year of the last General Election, when the KLCI rose 10.5%.
While the KLCI was relatively unchanged last week, the ringgit appreciated against the US dollar for the fifth consecutive week and was last quoted at US$/RM4.428.