Fund Flow Foreign funds appear to be making a comeback, but could be short-lived

by **Cals** Mon 06 Jan 2014, 14:37

Fund Flow Foreign funds appear to be making a comeback, but could be short-lived

Business & Markets 2013

Written by Surin Murugiah of theedgemalaysia.com

Monday, 06 January 2014 09:57

KUALA LUMPUR (Jan 6): MIDF Research said that after 12 consecutive weeks of outflow, foreign funds appeared to be making a comeback into Malaysia, but cautioned that it could be a premature conclusion

In a note Monday, the research house said foreign funds bought RM33.9 million of Malaysian stocks last week.

In the preceding twelve weeks, a total of RM5.85 billion had left Malaysian equity, or an average of RM487 million a week.

It said that in the first two days of 2014, foreign funds were actually net sellers.

“Indeed, foreign selling was aggressive on Friday, with investors offloading RM149.4 million. It could be short-term profit taking as the market had been buoyant since Boxing day,” it said.

MIDF Research said foreign participation in the market picked up last week, although still remained in the “moderate” territory.

“Although participation rate (average daily gross purchase and sale) rose more than 50% to RM671 million, it was still significantly lower compared with the daily average of RM991 million in 2013.

“Local retailers were evidently nibbling in the market, and were net buyers in the first two days of the year. We note that retailers bought RM38.6 million on Friday, the biggest 1-day net purchase made in 20 trading days. Participation rate last week was only RM688 million,” it said.

The research house said local institutions supported the market on Friday, absorbing RM110.8 million.

“It was uncharacteristic of the locals funds, which were usually net sellers in the earlier part of the year. Participation rate was high, with daily average value trade amounted to RM1.69 billion,” it said.

by **Cals** Mon 06 Jan 2014, 14:38

maybe last friday just adjust portfolio by buying in

Fund Flow Foreign funds appear to be making a comeback, but could be short-lived

Fund Flow Foreign funds appear to be making a comeback, but could be short-lived

Re: Fund Flow Foreign funds appear to be making a comeback, but could be short-lived