Foreign funds buy over RM1.2b worth of stocks

Analysts and fund managers say the increase was mainly driven by Morgan Stanley Capital International increasing its weightage on selected Malaysian stocks.


FOREIGNERS bought over RM1.2 billion worth of stocks yesterday, the most they have done so a month, driving stocks to its highest single-day gain for more than two months.

Analysts and fund managers said the increase was mainly driven by Morgan Stanley Capital International (MSCI) increasing its weightage on selected Malaysian stocks.

"Things like increasing weightage on selected Malaysian stocks can have a huge impact to the stock market," said a research head from a local brokerage.

The FTSE Bursa Malaysia KLCI (FBM KLCI) closed 1.9 per cent higher yesterday at 1,472.10. The huge gains almost wiped out the losses incurred most of the month.

For November, the benchmark index, which at one point was down by as much as 4.04 per cent, or 60.34 points, ended the month 1.3 per cent lower.

Stocks like CIMB and Bumi Armada, which are believed to be beneficiaries of the MSCI weightage revision, gained on active trading over the past two days. Bumi Armada shares, which at one point were up by five per cent (20 sen) yesterday, closed four sen higher at RM4.04.

More than 75 million shares changed hands, more than tenfold of the stocks' 60-day average trading volume of over five million shares. CIMB shares ended nine sen higher yesterday after it gained 31 sen the day before.

The trade statistics provided by Bursa Malaysia showed that foreign funds bought more than RM7.2 billion and sold some RM6.5 billion worth of stocks in November. In total, they were net buyers of almost RM700 million.

"The aggressive buying could also be driven by funds wanting to close the month on a strong note," said a fund manager.

During the month, telecom companies were the top performers among the FBM KLCI component stocks. DiGi.Com Bhd led the pack with a 11 per cent increase, followed by Axiata Group Bhd (+4.5 per cent), Maxis Bhd (+2.8 per cent), Kuala Lumpur Kepong Bhd (+2 per cent) and Telekom Malaysia Bhd (+1.8 per cent).

Top losers of the month among the component stocks were companies under the umbrella of Petroliam Nasional Bhd (Petronas). MISC Bhd was the top loser with a 16 per cent fall in its share price, followed by Malaysia Marine and Heavy Engineering Bhd (-11 per cent), Gamuda Bhd (-10 per cent), Petronas Chemicals Group Bhd (-7.1 per cent) and MMC Corp Bhd (-6.3 per cent).

Analysts pointed out that interest in local stocks remained fresh, maybe partly driven by the defensive nature of Malaysian stocks.

Foreign funds ? no way

sure najib and cronies' Swiss account

so call foreign funds