Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 22): Bursa Malaysia moved in tandem with other Asian markets with a lower on-week foreign inflow, but the slowdown in foreign inflow, however, was milder relative to other regional markets as Malaysia has been a laggard in Asia, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said foreigners bought RM501.5 million compared to RM728.1 million in the previous week, marking the seventh consecutive week of buying.

He said the estimated fund flow excludes off-market transactions.

"Investors classified as 'foreigners' were net buyers in every single day last week, bringing the buying streak to 12 days thus far.

"We note that buying activities of foreigners abated on Monday as net inflow was merely RM15 million compared to RM146.5 million the Friday prior," he said.

However, Zulkifli said the net buying momentum accelerated into the week at RM97.3 million on Tuesday and RM156.9 million on Wednesday.

"They, however, slowed down on Thursday and Friday, buying RM128.5 million and RM103.8 million on each day respectively, arguably taking cue from the comments of Fed FOMC members," he said.

Year to date, cumulative net foreign inflow into Bursa was at RM2.49 billion, according to Zulkifli.

He said last Friday, cumulative inflow amounted to RM1.99 billion.

"In retrospect, foreigners had offloaded RM19.5 billion in 2015 and RM6.9 billion in 2014," he said.

Zulkifli said foreign participation rate continued to show a sign of fatigue.

He said it remained subdued at RM774.9 million although it was a slight improvement from last week's RM765.9 million.

He said the rate has been staying below the RM1 billion level for the tenth time in the past 11 weeks.

"Local institution continued to sell for the seventh successive week by offloading RM558.5 million.

"The quantum of selling was smaller compared to RM646.3 million the week earlier," he said.

Zulkifli said participation rate of local funds improved to RM2.4 billion from RM2.18 billion week-on-week.

He said retail buyers returned to Bursa as net buyers last week, explaining that they bought up RM57 million worth of shares after selling RM81.8 million in the week before.

He said the net buying value was the highest since mid-June.

"Meanwhile, their participation rate has improved further to RM812 million from RM659 million the week prior. Retailers' participation rate was the highest since February," he said.

 

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