MIDF: Foreign funds flow back to Bursa
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Foreign tide has finally returned to Bursa Malaysia after three successive weeks of attrition, albeit only marginally.
Foreigners turned net buyers last week despite the short trading week, according to MIDF Research in its weekly fund flow report today.
Bursa was closed on Thursday, Friday and yesterday for the National Day, Aidul Adha festival and public holiday due to outstanding achievements by national athletes at the 2017 SEA Games.
Last week, foreign funds acquired RM36.2 million net based on transactions in the open market, excluding off market deals. This is the lowest weekly foreign acquisition for the year.
“We note that the six-day selling streak has snapped as global funds acquired RM7.1 million net on that day. Foreign buying momentum increased the next day by seven times to RM52.2 million net.
“However last Wednesday, international fund managers cleared their positions ahead of the long weekend, disposing RM23.1 million net,” it explained.
August turns out to be the first month of net outflows this year which amounted to RM241.9 million net. Nonetheless, cumulative year-to-date net infl ow still stands above the RM10 billion mark.
Foreign participation rate was resilient for the week as foreign average daily trade value (ADTV) remains above RM800 million for the fifth week in a row.
Retail participation, meanwhile, edged higher for the week. The retail ADTV increased by 25 per cent to RM865 million after three straight weeks being below RM700 million.
Questions & Answers
Q.What was the total net acquisition by foreign funds on Bursa Malaysia last week?
What was the total net acquisition by foreign funds on Bursa Malaysia last week?
Foreign funds acquired RM36.2 million net last week, based on transactions in the open market and excluding off-market deals. This figure represents the lowest weekly foreign acquisition recorded for the year so far.
Q.What was the main reason for Bursa Malaysia being closed for several days last week?
What was the main reason for Bursa Malaysia being closed for several days last week?
Bursa Malaysia was closed on Thursday, Friday, and Saturday due to National Day, the Aidul Adha festival, and a public holiday. The additional public holiday celebrated the outstanding achievements of national athletes at the 2017 SEA Games.
Q.How did August perform in terms of foreign fund flows compared to other months this year?
How did August perform in terms of foreign fund flows compared to other months this year?
August was the first month this year to experience net outflows, with a total of RM241.9 million net. However, the cumulative year-to-date net inflow for foreign funds still remains above the RM10 billion mark.
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