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Foreign funds net buyers of Malaysian equities

Publication Date : 18-08-2014


After three consecutive weeks of selling, foreign investors were net buyers of 261.6 million ringgit (US$82.98 million) of Malaysian equities in the week ended Aug 15, 2014, says MIDF Equities Research.

It pointed out on Monday that in the preceding three weeks, the outflow had averaged -257 million ringgit ($81.52 million).

MIDF Equities Research pointed out over the past week, foreign investors were net sellers on Monday, reflecting negative spillover from the preceding Friday when markets in the region came under selling pressure as geopolitical concerns spiked.

However, foreign funds turned net buyers in the remaining four trading days of the week, in consonant with the rebound in regional markets.

“The net amount purchased surged to +186.8 million ringgit ($59.26 million), the highest in 20 trading days,” it said.

On cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014. However, the amount of outflow for the year had subsided to -1.97 billion ringgit ($624,900 million) as of last Friday. In 2013, Malaysia reported a net inflow of +3.0 billion ringgit ($951,600 million).

MIDF Equities Research said freign participation, as measured by the average daily foreign gross purchase and sale on Bursa, dropped to 784 million ringgit ($248.70 million), the lowest in three weeks.

“Foreign weekly participation rate has been volatile since May this year, ranging from a weekly average of 672 million ringgit ($213.17 million) to as high as 2.2 billion ringgit ($697,900 million).

“The retail market is currently very active but investors remained cautious. Retail investors offloaded -31.3 million ringgit ($9.93 million) last week, the 18th consecutive week of selling.

“More importantly, participation rate surged to 1.20 billion ringgit ($380,700 million), the second highest this year after the week ended Feb 21,” said the research house.

MIDF Equities Research said local funds, after supporting the market for three weeks, reduced their holdings last week, selling -230.3 million ringgit ($73.05 million) net. Participation rate was elevated at 2.79 billion ringgit ($885,000 million), the second highest this year.


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