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Monday, 17 July 2017 | MYT 10:18 AM

Foreign investors return after two weeks of withdrawal

KUALA LUMPUR: Foreign investors have started to mop up stocks on Bursa Malaysia again after two weeks of withdrawal. 

MIDF Research said the fact that there has not been a prolonged period of foreign selling bodes well for the local market.

“Based on preliminary data by Bursa, foreign investors acquired RM305.1mil, the highest since the week ended May 12. 

“This was the higher than that reported by the exchanges in Thailand, Indonesia and Philippines. The estimate is based on transactions in the open market and excluded off market deals,” MIDF said in its weekly fund flow report. 

The research house noted that foreign investors were net buyers in three out of five trading days. 

The heaviest foreign buying during the week was recorded on Thursday with net acquisitions reaching RM166.9mil net, the highest in a day since June 23. 

“The catalyst for foreign buying on Thursday was the overnight gains on Wall Street following Fed Chair Yellen’s cautious tone on the U.S monetary policy,” MIDF said. 

Last week’s foreign buying lifted the cumulative year-to-date inflow to above the RM10bil mark to RM10.27bil.

Foreign participation rate rebounded to an elevated level last week. The average daily trade value (ADTV) increased by 41% for the week, from RM792.2mil to RM1.12bil. 

After three lacklustre weeks, retail participation rebounded to a healthy level.Retail ADTV surged 29% to RM831.7mil after three consecutive weeks of being under RM650mil.

Maybank stocks were the beneficiary of the highest net money inflow of RM10.80mil for the week ended July 14. Its share price outperformed the benchmark index with a 0.18% gain for the week.

The second highest net money inflow beneficiary was Petronas Chemicals, amount-
ing to RM9.66mil while PPB Group saw the third highest money inflow of RM8.22mil. 

Sime Darby saw the largest net money outflow of RM14.64mil last week. Public Bank recorded the second largest net money outflow of RM13.20mil and CIMB registered the third highest net outflow at RM11.07mil.