KUALA LUMPUR (July 11): Foreign tide finally returned to Bursa after 10 successive weeks of selling, though only marginally, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said foreigners turned net buyers last week despite the short trading week.

Bursa was closed on Wednesday and Thursday for Eid al-Fitr festival.

Zulkifli said that over the three trading days, foreign investors on net purchased RM93.5 million on Bursa, after a negligible RM1.4 million selling the week prior.

He said the estimates are based on transactions in the open market which excluded off market deals.

“We note that the buying momentum from the second half of the preceding week was carried forward as trading commenced on Monday, in which foreigners loaded up RM168.8 million.
 
“It was the third highest daily buying since April 1 this year.
 
“However, the buying momentum halted on the eve of the two-day holiday, in which foreign investors reduced their holding marginally by RM8.3 million during the morning session,” he said.
 
Bursa was closed early that day by noon.
 
Zulkifli said foreign selling resumed when Bursa reopened on Friday, as foreigners sold another RM67 million.
 
“Last week’s foreign net buying has effectively lifted the cumulative net foreign fund flow thus far this year into shares listed on Bursa from the negative territory.
 
“As of last Friday, the year-to-date cumulative flow into Bursa amounted to an estimated RM58.4 million, up from RM35.1 million the week prior.
 
“In retrospect, foreigners had offloaded RM19.5 billion and RM6.9 billion in 2015 and 2014 respectively,” he said.
 
Zulkifli said despite the intermittent trading days last week, foreign participation rate managed to edge up to RM906.5 million from prior week’s RM811.7 million.
 
He said it was the first time it rose above the RM900 million level after one month of moderate trading at less than RM900 million.
 
Zulkifli said local institution sold RM87 million on Bursa last week,
their first net selling in 11 weeks.
 
“Meanwhile, its participation rate declined further to RM1.41 billion from prior week’s RM1.76 billion, amid the short trading week.
 
“Retail buyers continued to be net sellers for the third week in a row. They sold marginally at RM6.5 million. Meanwhile, their participation rate slowed down to RM384.8 million,” he said.