KUALA LUMPUR: Foreign fund buying on Bursa Malaysia jumped four times to RM309.4mil in the week ended July 28 from the preceding week, says MIDF Research said.

It said on Monday despite the quagmire in the Korean peninsular and some attrition from regional peers, foreign investors maintained their conviction in stocks listed on Bursa.

MIDF Research said indeed, net foreign purchases were recorded every day throughout the week. 

“Foreign investors have been net buyers for six straight days, the longest streak since April 20-May 16. We note that the foreign buying peaked on Monday at RM125.3mil which saw the KLCI closing above 1,760 for the first time in two weeks.

“With one more trading day left, July looks set to be the seventh consecutive month of foreign buying. As of July 28, cumulative foreign inflow had amounted to RM485.3mil net for the month, which was already higher than June’s figures,” it said

The research house noted foreign participation rate was fairly healthy. Foreign average daily trade value (ADTV) rose 11% from RM739mil in the prior week to RM818mil, hovering under RM1bil level for the fourth week running.

As for retail investors, their participation was still tepid. Retail ADTV decreased by 17%, retreating to a level below RM700mil at RM648.5mil.

MIDF Research said Petronas Gas stocks were the beneficiary of the highest net money infl ow of RM17.55mil. Its share price outperformed the benchmark index with a 0.74% gain for the week.

The second highest net money inflow beneficiary was KL Kepong, amounting to RM5.28mil. Its share price underperformed the KLCI with a 0.16% loss during the review week. 

The net inflow amidst declining share price indicates a buy-on-weakness (BOW) stance among some investors.

CIMB saw the largest net money outflow of -RM21.71mil last week. Its stock price substantially outperformed the KLCI with a 4.57% gain for the week.

Maybank recorded the second largest net money outflow -RM15.87mil during the week under review. Its share price underperformed the KLCI with a 0.10% gain for the week. 

“It is notable that the net money outflow amidst advancing share price indicates a sell on strength (SOS) stance among investors,” it said. 

MIDF Research said Maybank’s Indonesian unit earnings rose 16.3% for 1H17.

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