Some RM18.35 million flowed into the top 20 stocks on Bloomberg’s buying-on-weakness list for the week of April 15 to 21, while RM14.46 million flowed out of the top 20 stocks on its selling-on-strength list. This indicated that there was more bargain-buying activities than profit taking in the local stock market during the week in review.
Topping the buying-on-weakness list was Public Bank Bhd. The stock fell five sen, or 0.6%, during the week to close at RM8.40 on April 21, with RM3.8 million flowing into the counter.
The Employees Provident Fund has been actively buying Public Bank shares recently.
Resorts World Bhd saw an inflow of RM2.72 million as its share price shed two sen, or 0.9%, during the week to close at RM2.33 last Tuesday. The stock attracted some interest recently following a re-rating by analysts.
Investors also bought into plantation giant IOI Corp Bhd, which saw its share price decline four sen, or 0.93%, during the week to close at RM4.26 on April 21. Some RM2.6 million flowed into the stock.
Another plantation behemoth, Sime Darby Bhd, also attracted buying interest. It saw an inflow of RM1.84 million during the week. The counter fell five sen, or 0.78%, to close at RM6.40 last Tuesday.
Plantation stocks have been attracting interest recently, following the surge in crude palm oil prices which surpassed the psychological level of RM2,500 per tonne for the May and June delivery contracts.
Besides IOI Corp and Sime Darby, Hap Seng Plantations Holdings Bhd also saw an inflow of RM370,000 during the week. Hap Seng fell two sen, or 1.1%, to close at RM1.87 on April 21.
There has been renewed interest in steel manufacturers as investors believe prices and demand for steel products will improve with the government’s pump-priming efforts. Steel counters Lion Industries Corp Bhd and Lion Corp Bhd saw an inflow of RM420,000 and RM180,000 into their respective stocks during the week.
Bloomberg’s selling-on-strength list showed investors taking profit. YTL Power International Bhd topped the list during the week in review, with RM3.99 million exiting the stock as its share price gained three sen, or 1.53%, to close at RM1.99 last Tuesday.
Axiata Group Bhd (formerly TM International Bhd) saw an outflow of RM3.39 million during the week as its share price rose 19 sen, or 10.73%, to close at RM1.96 on April 21.
Dealers say investors took some profit from Axiata ahead of the issue of new shares arising from a rights issue, which stands to more than double its existing share capital of RM8.45 billion. The rights for Axiata’s five-for-four rights issue ceased trading on April 22.
Meanwhile, DiGi.Com Bhd saw RM1.93 million flowing out of its stock during the week. The counter gained 30 sen, or 1.4%, to close at RM22.10 last Tuesday.
Construction giant IJM Corp Bhd saw some profit-taking activities, with RM910,000 exiting the stock during the week as it gained two sen, or 0.4%, to close at RM4.82 on April 21. The stock has gained 70.7% year to date as analysts and fund managers believe it is the best proxy to benefit from the government’s pump-priming efforts to stimulate the domestic economy.
This article appeared in The Edge Malaysia, Issue 752, April 27-May 3, 2009