Foreign investors return to Malaysia

Foreign investors return to Malaysia

KUALA LUMPUR - Bursa registered the strongest inflow in 10 weeks, as foreign investors made a comeback.

Foreign investors returned to Bursa, with the strongest inflow in 10 weeks, according to MIDF Research.

"Last week, foreigners bought 733.4 million ringgit after they offloaded 565.9 million ringgit the week prior amid a three-day trading week. Foreigners' participation rate remained relatively strong last week at 921.36 million ringgit, albeit lower than the 1,214.63 million ringgit recorded the week before," it noted in its weekly report.

The research house said there were net buyers in the last five trading days of the week after four days of net selling prior due to the short trading week.

Foreign investors bought 16.3 million ringgit on Monday, 34.7 million ringgit on Tuesday, 45.2 million ringgit on Wednesday, 49.6 million ringgit on Thursday and 31.9 million ringgit on Friday.

MIDF said the increased buying on Thursday was mainly attributed to the strong crude palm oil price, which hit 2,909 ringgit per tonne - the highest in four years, benefitting listed plantations companies with upstream operations.

Ringgit was also the strongest in the week on Thursday at 4.1095 against the US dollar.

"The year-to-date cumulative net foreign inflow was the highest in 18 weeks, at 2.544 billion ringgit, compared to 1.81 billion ringgit a week ago. In retrospect, foreigners had offloaded 19.5 billion ringgit in 2015 and 6.9 billion ringgit in 2014," MIDF said.

On the other hand, local institutions turned net sellers during the week, offloading 738.7 million ringgit. They sold for the latest five trading days after six days of net buying prior.

Retailers became net buyers two weeks in a row as they bought 5.3 million ringgit last week and 80.9 million ringgit the week prior.

Last week, Malayan Banking Bhd registered the highest net money inflow of 30.01 million ringgit. Its share price, however, underperformed the broader market, as it ended lower by 2.17 per cent, while the FTSE Bursa Malaysia KLCI was up by 1.09 per cent during the week under review.

Digi.com came in second with 7.57 million ringgit net inflow, while Petronas Gas recorded the third-highest net money inflow of 5.03 million ringgit.

Meanwhile, KL Kepong saw the largest net money outflow of 16.31 million ringgit last week, and Public Bank came in second last week, with a net outflow of 15.75 million ringgit.

Genting registered the third-largest net money outflow at 8.45 million ringgit in the review week, but its share price outperformed with a 5.41 per cent gain last week.

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