MIDF: Foreign funds flow back to Bursa

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.