Foreign funds turn long after 2 months of selling


Foreign investors turned buyers last week on Bursa Malaysia, going net long by RM417.3 million, the highest inflow posted since September 2018.

MIDF Amanah Investment Bank Bhd noted in a report yesterday that the foreign position value was 16 times the net inflow in the previous week. Foreign investors turned buyers in the last two weeks after nine consecutive weeks of selling.

Foreign investors’ renewed interest was driven by optimism on a possible resolution to the China-US trade dispute, the report noted.

Meanwhile, the Wall Street Journal reported that Washington is considering measures to roll back tariffs on Chinese products, which would help to offset the fears of a global economic slowdown after disappointing Chinese trade data.

So far in 2019, foreign investors bought RM424.5 million net of Malaysian equities.

The figure, when compared to three Asean peers, has the lowest net inflow on a year-to-date basis.

“The participation rate among various groups of investors recorded a decline across the board,” MIDF added.

Foreign average daily traded value (ADTV) has dipped by 20.7% to settle below the RM1 billion level.

Retailers and local institutions’ ADTV recorded a 14.9% and 17% decrease respectively.

“The retail market’s ADTV remains above its healthy level of RM800 million,” it said.

Among the stocks that posted the highest net money inflows were Public Bank Bhd, which registered a net money inflow of RM18.04 million, followed by CIMB Group Holdings Bhd at RM16.04 million and Tenaga Nasional Bhd.

Stocks that registered the highest net money outflows were Malaysia Airports Holdings Bhd, which saw a net outflow of RM13.32 million, followed by Malayan Banking Bhd at RM8.49 million and Genting Bhd at RM7.15 million.