KUALA LUMPUR: Foreign investors consolidated their position on Bursa Malaysia last week following the four-day Hari Raya weekend break – and the lack of local participation was noticeable, MIDF Research said today.
In its weekly Fund Flow Report, the research firm said that foreign participation was healthy last week, despite the short trading week.
"Foreign average daily trade value (ADTV) increased by 26 per cent for the week, from RM989.6 million to RM1.24 billion.
“Indeed, foreign trading was active on Wednesday and Friday, as the trading value exceeded RM1 billion for both days," it reported.
Looking at the big picture, MIDF Research said that foreign investors had built a solid position on Bursa in 1H2017, buying six months in a row.
"Cumulative foreign buying on Bursa surged substantially to RM10.2 billion, or an estimated US$2.3 billion in the first half, the highest among Southeast Asian (SEA) peers. The next biggest recipient in Sea was the Jakarta bourse, recording a surplus of US$1.3 billion," it said.
However, looking at the immediate scenario, the research house reported that foreign investors disposed of RM298 million last week, which was the largest weekly outflow this year, according to preliminary data by Bursa Malaysia, it wrote.
"The heaviest foreign selling was recorded on Friday with net disposals surging to RM228.4 million as fund managers rationalised positions as the second quarter came to a close," MIDF Research noted.