KUCHING: For the first time since February, foreign inflow outstripped outflow on Bursa Malaysia to the tune of RM274.4 million net last week as compared to -RM776.1 million on a weekly average since early this year.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), this marks the first net inflow after 25th consecutive week of foreign net selling.
“So far in 2020, foreign investors have sold RM19.7 billion net on Bursa,” MIDF Research said yesterday. “In comparison with the other six Asian markets that we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis.
“As market reopened on Monday last week, foreign investors bought RM54.6 million net of local equities, marking the start of buying trend for the week.
“Foreign net inflow increased to RM105.4 million and RM197.61 million on Thursday and Friday last week respectively with the largest net outflow of the week on Tuesday.”
MIDF Research noted that the foreign turns net buyer was probably buoyed by the positive sentiments on another potential US stimulus package, better-than-expected US jobless claims, beating consensus by 2.6 per cent.
The research arm further noted that this is on top of the positive newsflow in the Oil and Gas sector as the Energy Information Administration (EIA) reported two consecutive crude oil draw in at 7.4 million and 4.5 million barrels for the past two weeks.
“On Tuesday, the only foreign net outflow for the week, at RM103.3 million, coincided with the Malaysian economic data release, Construction Output and Retail Sales which recorded dismal figures of -44.9 per cent and -9.2 per cent against forecasts of -10 per cent and 3.5 per cent.”
In comparison to another three South East Asian markets that MIDF Research tracked last week, Malaysia recorded the highest foreign net inflow while Thailand experienced the biggest outflow compare to the others.
“In terms of participation, the retail investors recorded a weekly decline of 28.8 per cent in average daily trade value (ADTV) to RM6.02 billion while the foreign investors experienced the least weekly decline of ADTV by 14.47 per cent to reach RM1.43 billion.”
Overall, CIMB Group Holdings Bhd registered the highest net money inflow of RM9.42 million last week, followed by Gamuda Bhd with the second highest net money inflow of RM3.67 million.
Public Bank Bhd saw the third highest net money inflow of RM2.53 million.
On outflows, Top Glove Corporation Bhd saw the largest net money outflow of RM21 million last week.
Hartalega Holdings Bhd recorded the second largest net money outflow RM19.43 million during the week under review while Petronas Dagangan Bhd registered the third largest net money outflow of RM5.82 million in the review week.