KUALA LUMPUR: Foreign investors are making a comeback to the local equity market with foreigners mopping up RM382.8 million net last week, the highest since the third week of September.
MIDF Research said there was a strong rise in foreign participation, with foreign average daily trade value (ADTV) rising to RM848 million, 40 per cent higher than the week before.
“It is also nearing last year’s average participation of RM957 million,” said the research house.
“Foreigners were marginal net sellers as the market opened on Monday and Tuesday. The selling ended abruptly on Wednesday as foreigners turned net purchasers at RM130 million.
“The inflow peaked on Thursday as foreigners bought RM226 million, the highest since October 18 last year. It receded on Friday, in line with regional trend,” it said.
MIDF Research said Tenaga Nasional Bhd (TNB) registered the highest net money inflow of RM54.49 million last week followed by YTL Corp Bhd and CIMB Bank Bhd.
“TNB’s share price ended unchanged, but slightly outperformed the broader market as the FBM KLCI declined by 0.18 per cent during the week under review,” it said.
It said local players took the opportunity of foreign buying to clear some positions.
“We note that the retail market is currently active, with participation rate the highest since August.”
On the Asian market, global investors made a beeline for its equity last week with foreigners purchasing a net aggregate amount of US$1.08 billion (RM4.8 billion) of listed equity, the highest since September last year.