KUALA LUMPUR (July 5): CGS-CIMB Securities Sdn Bhd said on Tuesday (July 5) that Petronas Chemicals Group Bhd (PetChem), Tenaga Nasional Bhd (TNB) and Public Bank Bhd were the top three stocks with the highest fund flows last week (June 27 to July 1).
"PetChem was the largest net buy for local institutional investors, but the largest net sell for foreign institutional investors.
"TNB was the largest net buy stock for retail investors, but the largest net sell for local institutional investors.
"Public Bank was the largest net buy for foreign institutional investors, and the second largest net sell for local institutional investors," CGS-CIMB analyst Ivy Ng Lee Fang wrote in a note.
On PetChem, Ng said local institutional investors' net buy value of PetChem shares stood at RM101.1 million, while foreign institutional investors' net sale of PetChem shares was valued at RM102.5 million.
For TNB, she said retail investors' net buy value of TNB shares stood at RM47.3 million, while local institutional investors' net sale value of TNB shares was valued at RM82.6 million.
On Public Bank, Ng said foreign institutional investors' net buy value of Public Bank shares stood at RM40.9 million, while local institutional investors' net sale of Public Bank shares was valued at RM45.7 million.
PetChem, TNB and Public Bank are constituents of the 30-stock FBM KLCI.
On the broader market, Ng said the KLCI gained 0.9% week-on-week (w-o-w) due to selective bargain hunting.
The gain represented the KLCI’s first weekly gain in six weeks, according to her.
"The average daily trading value for the week fell by 8% w-o-w to RM1.6 billion, its lowest since the trading week ended Feb 4, 2022. The worst-performing sectors last week were technology, industrial and healthcare.
"[Across Bursa Malaysia,] foreign investors’ weekly net selling rose by 5.2 times to RM320 million last week. Local retail investors stayed as the largest net buyers for the second week.
"Local institutional investors raised their weekly net buying by 6.4 times w-o-w to RM91 million," she said.
Meanwhile, Bursa said in a statement to theedgemarkets.com that the weaker ringgit against the US dollar will benefit exporters.
Therefore, sectors that are export-oriented with high local content are likely to benefit with better earnings and share price performance, according to Bursa.
"Resource-based sectors such as plantation and energy would have similar impact as the weaker ringgit and higher commodity prices are likely to propel earnings higher for resource-based players.
"On the other hand, a much weaker ringgit or volatile movement of the local currency may create challenges for businesses, which could ultimately affect their bottom line.
"Foreign investors may also choose to stay on the sidelines if they perceive that the ringgit may weaken further as this could hurt their capital," Bursa said.
At the time of writing on Tuesday, the ringgit had weakened to 4.4172 against the US dollar.
The exchange rate so far on Tuesday was between 4.4125 and 4.4183. Over the last one year, the exchange rate was between 4.1300 and 4.4253.
At Bursa's 12.30pm break on Tuesday, the KLCI settled up 0.57 point or 0.04% at 1,438.09.
The index was traded between 1,437.46 and 1,444.67 so far on Tuesday.