Posted by moneyman2525 > 2013-12-30 17:20 | Report Abuse

Be careful my friends, trade with caution please as almost all foreigners had chabuted.

NO CONFIDENCE IN BN GOVT: RM5.85 BIL of foreign funds, OR NEARLY ALL, have fled M'sian share market

Monday, 30 December 2013 16:41

KUALA LUMPUR — Nearly all the foreign money invested in Malaysia's bourse this year has flowed out of the country, MIDF research said in its report today.

According to the public-listed financial institution's research, only US$1.2 billion (RM2.86 billion) from a one-time estimated high of RM18.8 billion remained on Bursa Malaysia at the market's close last Friday, two days after Christmas.

“The overhang of foreign portfolio capital in the Malaysian equity market remained high,” MIDF Research said.

“Since January 2011, the cumulative net inflow of foreign capital into Bursa is estimated to be at RM18.5 billion.”

The stunning announcement came as MIDF Research reported a whopping RM5.85 billion in foreign investments leaving the Malaysian market in a span of 12 weeks, or an average of RM487 million a week.

But MIDF also remarked that the steady stream of money flowing out had slowed last week to RM114.1 million, which it said was likely due to slow trading during Christmas week.

Participation rate for the week was also the lowest recorded this year, it said, noting that the average daily gross purchase and sale was RM400 million.

MIDF also noted that foreign investor-turned-net buyer as at December 27 was at RM57.9 million net transaction.

This coincided with a 17-point surge in the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) on that day.

“Sceptics would argue that this was probably local money repatriated back for some window dressing,” MIDF said.

It added: “While this may be true, markets in the region, sans Thailand, appears to be staging a mini rally since Boxing Day.”

The term, “window dressing” in investment circles describes a strategy used by mutual funds and portfolio managers at the end of a year to improve the appearance of its performance.

Shares on Bursa Malaysia ended higher, with the FBM KLCI hitting a new intra-day high of 1,1867.67 points during the morning trading session before taking a break for lunch.

The previous intra-day high was recorded last Friday at 1,862.63 points. - Malay Mail