MIDF Research: Return of local retail investors

KUALA LUMPUR: MIDF Equities Research said local retail investors
turned net buyers in the week ended May 17, which was the first time in
24 weeks, although it was a marginal RM16.8mil.
The research house said on Monday there was a heightened participation rate of RM1.5bil, higher than that of foreign investors.
"Local
retailers do have cash, having sold net RM5.9bil this year, surpassing
the net RM4.2bil offloaded in the entire 2012," it said.
MIDF
Research said however, selling by local funds continued to be aggressive
last week. Net sale by local funds was RM1.1b compared with RM2.4b the
week before.
It pointed out their participation rate of RM2.5bil was the second highest this year after the RM3.6bil the week before.
"As
is the case with local retailers, local funds are also sitting on a
huge pool of liquidity, having reduced their equity exposure in 2013 by a
massive RM12.7bil net in the open market, compared with RM9.5b net sold
down in the entire 2012," it said.
As for foreign buying, the
intensity faded as expected after an unprecedented surge in foreign
buying in the aftermath of the 13th General Election.
"Foreign
investors bought net RM1.1bil net of Malaysian equity in the open market
(that is excluding off-market deals) last week.
"It was much
lower than the net RM3.1bil snapped the week before, but sizeable enough
to be the fourth highest in a week this year. It was also a record 23
straight weeks of net buying by the foreigners," said MIDF Research.