KUALA LUMPUR: After three consecutive weeks of selling, foreign investors were net buyers of RM261.6mil of Malaysian equities in the week ended Aug 15, 2014, says MIDF Equities Research.

It pointed out on Monday that in the preceding three weeks, the outflow had averaged -RM257mil.

MIDF Equities Research pointed out over the past week, foreign investors were net sellers on Monday, reflecting negative spillover from the preceding Friday when markets in the region came under selling pressure as geopolitical concerns spiked.

However, foreign funds turned net buyers in the remaining four trading days of the week, in consonant with the rebound in regional markets.

“The net amount purchased surged to +RM186.8m, the highest in 20 trading days,” it said.

On cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014. However, the amount of outflow for the year had subsided to -RM1.97bil as of last Friday. In 2013, Malaysia reported a net inflow of +RM3.0bl.

MIDF Equities Research said freign participation, as measured by the average daily foreign gross purchase and sale on Bursa, dropped to RM784mil, the lowest in three weeks.

“Foreign weekly participation rate has been volatile since May this year, ranging from a weekly average of RM672mil to as high as RM2.2bil.

“The retail market is currently very active but investors remained cautious. Retail investors offloaded -RM31.3mil last week, the 18th consecutive week of selling.

“More importantly, participation rate surged to RM1.20b, the second highest this year after the week ended Feb 21,” said the research house.

MIDF Equities Research said local funds, after supporting the market for three weeks, reduced their holdings last week, selling -RM230.3mil net. Participation rate was elevated at RM2.79bil, the second highest this year.


Source: The Star Online