There is a saying : "Follow the Money", It is not a secrete that asset prices grows when there is money flowing into it, in particular 'Hot' money. It pays to monitor this flow. The following chart tracks the weekly trade participation since May 2013. It shows how much net trades excuted by Foreign institution(green), local retail(red) and local institute(blue) in RM million. A negative value is net selling, positive value means net buying. The FBMKLCI index is overlayed to see if it does influence the overall picture.(Data Source: Inter-pacific securities sdn. bhd.)
Week 13 comment:
foreign institution reversed it trend by becoming net buyers of RM710.9 million worth of equity. Immediately the index moved up in tandem. The important question is, will this trend continue?