Foreign investors upped buying to RM337.7m last week, says MIDF Research

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KUALA LUMPUR (Dec 11): Foreign investors acquired RM337.7 million in Malaysian equity last week, compared with RM272.3 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Adam M Rahim said that last week, foreign investors were net buyers on every single day, extending the daily buying binge to nine straight days as of last Friday, and also the longest in nearly seven months.

He said global investors started the week strong by mopping up RM89.5 million as risk-on mood improved following the passage of a Senate tax bill in the preceding weekend.

"However, foreign buying took a hit on Tuesday as it went down to RM20.8 million net despite the FBM KLCI reaching a two-week high of 1,724 points amid the improvement in 3Q17 corporate earnings.

"It is noteworthy that foreign funds gradually increased their exposure in Malaysian stocks thereafter.

"Most importantly, foreign buying peaked on Friday at RM159.5 million net, the largest acquisition in a day since Nov 23," he said.

Adam said it was of no surprise as the mood on the local bourse was rekindled by outstanding Chinese trade data coupled with a rally staged by Malaysian banking stocks.

"We notice that the foreign inflow into Bursa continues to buck the trend of its Asian peers," he said.

Adam said the third week of inflow has brought the year-to-date foreign purchase nearer to the RM10 billion level at RM9.71 billion.

He said that in the past 49 weeks, Malaysia has experienced 33 weeks of foreign inflows compared to 26 weeks in 2016.

"Foreign participation remained elevated last week as the foreign average daily trade value (ADTV) stayed above RM1 billion at RM1.32 billion while retail ADTV was still subdued at RM805 million," he said.