KUALA LUMPUR: Foreign funds staged a commendable return to stocks listed on Bursa Malaysia despite the rhetoric between Beijing and Washington, observed MIDF Reasearch Bhd.
The firm said based on preliminary data from Bursa which excluded off market deals, the net amount snapped up by foreign investors last week amounted to RM328 million net, offsetting the RM301.3 million net disposed in the preceding week.
The first day of the second quarter 2018 started off with an attrition of RM40.6 million net on Monday as investors were cautious regarding the timing of the 14th General Election (GE14), MIDF Research saidin its weekly fund flow report.
The level of foreign attrition later peaked on Wednesday at US$90.1 million net as investors digested China’s move to impose a tariff of 25 per cent on USD50 billion worth of U.S products,” it added.
Southeast Asian markets including Malaysia were badly hit on Wednesday as three major bourses posted daily losses of more than one per cent.
“Nonetheless, foreign investors made their way back to Bursa on the next day, acquiring RM158.9 million net of local equities amid news of possible talks between the US and China regarding trade.
“It is noteworthy that foreign investors still entered Malaysia at a higher pace of RM212 million net on Friday despite threats by President Trump to slap US$100 billion in additional tariffs on China.”
The firm added that the upbeat momentum was probably buoyed the GE14 that has come in sight after the announcement that parliament will be dissolved on Saturday.
“We note that Malaysia was the only beneficiary of inflows last week among four Asean markets we track,” it added.
On a year-to-date basis, foreigners have so far accumulated RM2.53 billion net of local equities.
Out of the 14 weeks that had passed in 2018, only three experienced net outflows.
Foreign participation improved a bit as the foreign average daily trade value (ADTV) increased by 13 per cent to settle above the RM1 billion mark.
The retail market too was vibrant with the ADTV increasing by 13 per cent to RM953 million.
Genting Bhd registered the highest net money inflow of RM11.13 million last week with its share price was unchanged but slightly outperformed the FBM KLCI which declined by 1.42 per cent during the week under review.
Telekom Malaysia Bhd recorded the second highest net money inflow of RM3.33 million as its share price outperformed against the market benchmark with a 3.07 per cent gain during the review week.
On the flipside, Public Bank Bhd saw the largest net money outflow of RM30.75 million last week as its stock price slightly declined by 0.25 per cent, but slightly outperformed the broader market as the FBM KLCI declined by 1.42 per cent during the week under review.
Fraser & Neave Holdings Behd recorded the second largest net money outflow RM17.17 million during the week under review.