Foreigners make comeback on share investment malaysia

KUALA LUMPUR: Foreign investors are making a comeback to the Malaysian equity market, although it is still early days, according to MIDF Research. – share investment malaysia

The research house said based preliminary data from Bursa, foreigners mopped up RM382.8mil net for the week ended Jan 13, the highest since the third week of September.

MIDF said stronger economic data that came out since the new year showed that the Malaysian economy remained stable.

These include stronger exports and growth in retail sales (9% year-on-year) and industrial production (6.2% year-on-year), all for November.

“Foreigners were marginal net sellers as the market opened on Monday and Tuesday. The selling ended abruptly on Wednesday as foreigners turned net purchasers at RM130mil.

“The inflow peaked on Thursday as foreigners bought RM226mil, the highest since Oct 18, 2016. It receded on Friday, in line with regional trend,” MIDF said in its weekly report.

MIDF noted that foreign average daily trade value rose to RM848mil, 40% higher compared with that the week before. It is also nearing last year’s average participation of RM957mil.

“Local players took the opportunity of foreign buying to clear some position. We note that the retail market is currently active, with participation rate the highest since August,” the research house said.

For the week ended Jan 13, Tenage Nasional Bhd  (TNB) registered the highest net money inflow of RM54.49mil.

However, MIDF said its share price ended unchanged for but slightly outperformed the broader market as the FBM KLCI declined by 0.18% during the week under review.

TNB recently announced an approximately RM474mil acquisition of UK-based Vortex Solar Investments.

YTL Corp recorded the second highest net money inflow of RM8.37mil while CIMB Group saw the third highest net money inflow of RM8.26mil last week.

Meanwhile, Petronas Chemicals saw the largest net money outflow of RM10.15mil last week.

Its stock price performance lagged the market benchmark with a 0.55% drop vis-à-vis the FBM KLCI which declined by a smaller 0.18% during the review week.

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Cautious start for bursa stock picks early monday as ringgit dips

KUALA LUMPUR: Blue chips started the week on a cautious footing as the FBM KLCI lost more than five points on profit taking of Kuala Lumpur Kepong, Public Bank and Maybank, extending the index’s decline from last Friday.- Stocks picks

At 9.48am, the KLCI was down 5.03 points or 0.03% to 1,667.47. Turnover was 506.89 million shares valued at RM158.05mil. There were 155 gainers, 274 losers and 276 counters unchanged.

Hong Leong Investment Bank (HLIB) Research said based on the recent strong rebound from the 1,615 level two weeks back, “we may expect further consolidation on the back of extended profit taking activities as the KLCI has hit the resistance around the 1,680-1,690 levels”.

Nevertheless, trading interest should be seen within the oil and gas sector if crude oil can rebound higher towards US$60 per barrel mark.
The ringgit fell 0.09% against the US dollar to 4.4640 from the previous close of 4.4600. But year-to-date, it is up 0.46%.

Meanwhile, oil prices inched up on Monday, supported by a weaker dollar and expectations that OPEC and other producers will cut output as part of a deal to curb global oversupply.

Brent crude futures, the international benchmark for oil prices, were trading at US$55.55 per barrel at 0035 GMT, up 10 cents from their last close. US West Texas Intermediate (WTI) crude futures were up 9 cents at US$52.46 a barrel. – Stocks picks

At Bursa Malaysia, KL Kepong fell 18 sen to RM24.02 with 5,900 shares done.

Only World group was down 11sennto RM2.18 with 1.04 million shares done, but off the  early low of RM2.12 after it announced that 14 outlets in First World Hotel, Genting Highlands would be temporarily closed from Feb 12.

Public Bank fell 12 sen to RM19.96 and Maybank shed eight sen to RM8.24.

BAT added 50 sen to RM45.30, Apex Healthcare 19 sen higher at RM4.79 and Aeon Cfedit 10 sen to RM15.26 while MSM rose eight sen to RM4.90.

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Our Recommendation for KLSE investors:

KLSE INTRADAY  SIGNALS: BUY EWEIN AT 0.735 TARGET 0.765, 0.795 SL 0.700…