Friday 29 Mar 2024
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KUALA LUMPUR (March 7): Foreign investors made a roaring comeback on Bursa last week, after what appeared to be restrained buying in the fortnight prior, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said that last week, foreigners bought listed equities amounting to RM972.2 million net on Bursa, more than triple that in each of the preceding 2 weeks.

He said this was estimated based on transactions in the open market and excluded off market deals.

Zulkifli said the bulk of the purchases came in the latter half of the week as foreign investors bought more than RM300 million a day on Wednesday till Friday.

He said the week started on an edgy note as foreigners dumped RM137.6 million on Monday, the highest in 23 trading days.

“Sentiment was dampened by the heavy selling in China during the morning session.

“The outflow started to reverse on Tuesday, and by Wednesday foreigner investors had pumped in RM350.0 million, the third highest in a day this year.

“The buying peaked on Thursday as the purchased amount hit RM391.6 million, the fifth highest since the start of 2014,” he said.

Zulkifli said there was still active buying on Friday, buy the amount receded to RM303.3 million.

He said last week’s foreign purchases swung the cumulative year-to-date fl ow-of-fund fi gures into the positive region, with a net surplus of RM567.4 million.

He said for the entire 2015, the net outfl ow was RM19.5 billion.

Zulkifli said that in February, the net foreign purchases totalled RM570.7 million, the first monthly surplus in 4 months.

He said foreign participation rate surged to its highest since the first week of December.

Zulkifli said the average daily traded value of shares spiked to RM1.40 billion, almost 50% higher compared with that the week before.

He said in the last 3 trading days, the participation rate ranged between RM1.36 billion - RM1.51 billion, an elevated level.
“Local investors took the opportunity of foreign buying to offload RM819.7 million.
 
“Participation rate surged to RM2.23 billion, surpassing the RM2 billion level after averaging less than that in the three weeks prior.
 
“Despite heavy institutional presence, retailers conviction in the market remained low. Retail investors offloaded RM152.5 million, the highest attrition in 9 weeks,” he said.
 
Zulkifli said sellers dominated the participation rate, as trading activity was still subdued at RM624 million, only a slight pick-up from RM621 million the week before.

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