Foreign funds buy $130mil Malaysian equity

PETALING JAYA: Foreign investors remained net buyers of local stocks for a fourth consecutive week, reducing net outflow for the year to RM3.1bil(S$1.1 billion), MIDF Research said.

But the latest weekly statistics also revealed that their appetite was waning.

"Although foreign investors have been slowly rebuilding their exposure, there is no evidence that the trend will be sustainable," MIDF Research said in a note yesterday.

Investors classified as "foreign" were net buyers last week with RM354.4mil.

"Foreign investors were net buyers every day last week, except on Thursday. Buying was aggressive on Tuesday, when a net amount of RM215.9mil was mopped up. It was the seventh highest in a day this year," it said.

However, it also noted that the trading activity of foreign investors continued to decline and the foreign participation rate, which is the daily average gross purchase and sale, had fallen for the third consecutive week to RM869mil.

Analysts said the inward fund flows could be sustainable as the appetite for risk assets was growing again in the bigger picture.

"Taking into account global factors, the case for equities remains sound in the short to medium term," said an analyst with a local research house.

In the bigger picture, local institutions sold RM204.2mil in the fourth consecutive week of selling and their participation rate rose to the highest in a month to RM2.1bil.

"Local institutions have bought RM3.88bil net so far this year. In the year 2014, they had mopped up RM8.18bil net," MIDF Research said.

Meanwhile, retailers continued to sell their holdings last week at RM150.2mil and have sold a cumulative RM502mil in the past four weeks.

MIDF Research also noted that the participation rate for retailers remained low at only RM728mil and had been below RM750mil every week in the past four weeks.

Among individual stocks, Axiata Group Bhd attracted the highest money inflow of RM35mil, followed by Public Bank Bhd at RM16.86mil and CIMB Group Holdings Bhd at RM7.21mil.