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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