May 16, 2012

MALAYSIA’S FOREIGN FUND FLOW

• Bucking regional trend, Malaysian stocks continued to attract foreign money, albeit marginally, last week.  Foreign investors BOUGHT on net basis, Malaysian-listed shares amounted to RM91.4m compared with RM463.3m the week before. Foreign investors have been net buyers of Malaysian stocks for 13 consecutive weeks now.
• For the year until last Friday, Malaysia had attracted +USD2.27b of foreign fund, compared with only +USD643m in 2011. Since Jan 2010, the cumulative net purchase of Bursa-listed shares by foreigners amounted to RM24.1b (see chart below).
• Foreign investors were net sellers on Monday and Wednesday last week. The level of foreign participation eased to below RM600m again and remained in the low range (<RM750m). Foreign daily average gross trade (purchases + sales) was RM597m compared with RM670m the week before.
• Local retailers continued their retreat from the market, as focus is likely to be on the FELDA IPO. Local retailers’ participation declined to RM725m compared with RM754m the week before. Retailers were net sellers for the second consecutive week, off loading -RM133m net last week.
• Local  institutions turned net buyers last week, the first time in 13 weeks. Signs of support are emerging as local institutions bought RM42m compared with a net sale of -RM376m the week before. They remained active market participants, with daily average participation rate staying above RM1b for the 19th running week.

malaysia foreign fund flow

by MIDF Research