September sees a foreign net inflow of RM66.3m in funds

For the 3rd week running in September, foreign funds bought some RM212.3m of stocks on Bursa


Foreign interest in Malaysian equity is rising with fund flows for September showing a net inflow of RM66.3 million in foreign funds.

Year-to-date outflow from Bursa Malaysia Bhd as of Sept 28, 2018, stood at RM8.5 billion, which is lower than the outflows from regional markets like Indonesia, Thailand and the Philippines.

MIDF Amanah Investment Bank Bhd’s research report yesterday noted that for the third week running, foreign funds bought some RM212.3 million of stocks on Bursa Malaysia over the trading week period, the longest buying streak so far since the 14th General Election in May.

The net buying was, excluding off-market deals, was about half the net inflow in the previous two weeks. “Malaysia was one of the two markets which attracted weekly foreign net inflow among the Asean markets, besides Indonesia,” MIDF’s research noted.

Foreign investors bought RM199.4 million net on Tuesday last week, followed by RM72.3 million net on Wednesday.

A highest weekly foreign net attrition worth RM37.9 million was seen last Thursday as foreign investors reacted to the interest-rate hike by the US Federal Reserve.

The same trend was seen across Asean markets like Thailand, the Philippines and Indonesia, with the highest foreign outflow of US$53.6 million (RM219.76 million) recorded in Thailand.

Nevertheless, MIDF said offshore funds paced down the out flow last Friday recording only RM10.9 million in net attrition.

Institutional investors were more active than the retail market and foreign institutions as its weekly average daily traded value (ADTV) was 7.3% higher at RM2.2 billion.

The weekly ADTV of the foreign market declined by more than 10%, but still remained above its healthy level of RM1 billion.

In the retail market, ADTV grew 5.6% to RM917.8 million, which is well above RM800 million.

Public Bank Bhd registered the highest net money inflow of RM84.2 million last week, followed by Malayan Banking Bhd (RM14.88 million), Malaysia Airports Holdings Bhd (RM13.95 million), Genting Bhd (RM11.62 million), Petronas Dagangan Bhd (RM8.85 million), Nestlé (M) Bhd (RM7.96 million), Hartalega Holdings Bhd (RM6.64 million), Yinson Holdings Bhd (RM6.15 million), Tenaga Nasional Bhd (RM4.89 million) and PPB Group Bhd (RM4.48 million).

CIMB Group Holdings Bhd recorded the highest net money outflow of RM42.53 million last week, followed by Petronas Chemicals Group Bhd (RM33.11 million), DiGi.Com Bhd (RM8.75 million), Hong Leong Bank Bhd (RM8.28 million), Dutch Lady Milk Industries Bhd (RM6.02 million), Scientex Bhd (RM4.6 million), Top Glove Corp Bhd (RM2.98 million), Lafarge Malaysia Bhd (RM2.48 million), Gamuda Bhd (RM1.47 mill ion) and SP Set ia Bhd (RM1.38 million).