Blue chips topped the buying-on weakness list with Malayan Banking Bhd (Maybank) attracting the most inflow followed by Tenaga Nasional Bhd, Genting Bhd and Public Bank-foreign tranche.
According to Bloomberg data, some RM7.06 million poured into Maybank as its share price eased five sen to RM5.05 during the week. The banking stock, which dropped following its recent cash call, rebounded to a six-month high of RM5.30 last Wednesday.
Tenaga’s share price slid to RM7.25 during the week in review from RM7.60 in the previous week. The 4.6% fall attracted some RM2.44 million into the utility stock, which has rebounded from its year low of RM5.70 in January.
Investors also took advantage of the weakness in Genting’s share price by pouring some RM2.13 million into the stock. It has outperformed the Kuala Lumpur Composite Index, gaining about 33% since the beginning of the year, compared with an 18% rise in the index.
Some RM1.46 million also flowed into Resorts World as it fell from its year high of RM2.51 to RM2.37 during the week.
Genting last Wednesday announced that the group and its subsidiary, Resorts World Bhd, had subscribed for US$100 million of senior secured notes issued by Las Vegas-based casino group MGM Mirage Inc. The notes are offered by MGM as part of a placement of US$1.5 billion in aggregate principal amount.
Plantation stocks dominated the selling-on-strength list, which may indicate profit-taking. The counters have rallied strongly, in line with the buoyant crude palm oil price that soared to RM2,700 per tonne before easing to RM2,500 last week.
Kuala Lumpur Kepong Bhd (KLK) topped the list with some RM3.75 million flowing out of the counter during the week in review. The stock gained 20 sen, rising to RM11.30 on May 19 from RM11.10 on May 13. It continued to climb, closing at RM12.20 on May 21.
IOI Corp Bhd, which was third on the list, also saw RM670,000 flowing out while there was an outflow of RM550,000 from Asiatic Corp Bhd shares during the week.
Telekom Malaysia Bhd’s share price gained 4.2% or 16 sen to RM3.98 during the week. The rise prompted investors to unload shares in the telco, resulting in a net outflow of RM3.34 million.
YTL Power International Bhd, which inched up two sen to RM2.08 during the week in review, saw a net outflow of RM260,000 from its shares.
Investors also locked in profit on glove makers, whose share prices have gone up substantially. Some RM440,000 flowed out of Top Glove, whose share price has surged 74% since the start of 2009. Investors also sold RM180,000 worth of shares in Kossan Rubber Industries Bhd during the week in review.
This article appeared in the Capital page of The Edge Malaysia, Issue 756, May 25-31, 2009.