MARKET DEVELOPMENT
Foreign and Retail Investors Snap up Shares on Bursa Last Week
Foreign and Retail Investors Snap up Shares on Bursa Last Week
15/10/2014 (Borneo Post) - Despite the downtrend movement of the FBM KLCI Index last week, foreign and retail investors were net buyers of equities on Bursa Malaysia for the week ending October 10.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report said the net amount of shares purchased by foreign investors was RM134 million while retailers bought RM178.3 million of shares.
It explained that foreign investors and retail investors bought up the shares of selective counters which share prices have declined and viewed as a ‘bargain’.
At the same time, the research firm observed that local institutions were net sellers, selling a net amount of RM312.3 million of equities last week.
Additionally, it noted that while prices of some shares dropped, investors classified as ‘foreign’ had been snapping up Malaysian equity on Bursa Malaysia last week.
It observed that Tenaga Nasional Bhd (TNB) has attracted the highest net money inflow of RM25.69 million while the company’s share price was unchanged for the week.
Interestingly, MIDF Research noted TNB is expected to announce its financial year 2014 (FY14) quarterly results due by this month as the power utility could benefit from favourable fuel costs.
The research firm pointed out that the rationale for investors purchasing the company’s shares could be attributable to buying ahead of TNB’s financial results announcement in anticipating of better financial performance for FY14.
Furthermore, MIDF Research observed that Kuala Lumpur Kepong Bhd’s shares (KLK) has attracted the second highest money inflow with RM10.36 million purchases as investors advocate buying the company’s share price on weakness.
It added that Hap Seng Consolidated Bhd pulled in the third highest net money inflow of RM5.8 million while the company’s share price movement has beaten the performance of the FBM KLCI by 2.24 percentage points last week.
As for money outflow, MIDF Research observed that investors took profit by selling shares of Nestle (Malaysia) Bhd which recorded the largest net money outflow for last week, amounting to RM33.18 million.
Additionally, the research firm noted DiGi.com Bhd’s share price registered the second largest net money outflow of RM12.36 million as investors also sold its shares to take profit.
The company shares which recorded the third net outflow was Sime Darby Bhd (Sime Darby) of which investors sold RM5.81 million.
The research firm noted the news of Sime Darby’s proposed to buy Kulim Bhd’s New Britain Palm Oil Ltd (NBPOL) has triggered investors to offload certain amount of the company’s shares although it was a positive move which could enhance Sime Darby’s earnings for the long term.
For the week ended October 10, MIDF Research observed foreign investors were net buyers of local equities in three out of the four trading days last week, despite shorter trading days due to the Hari Raya Haji holiday last Monday.
As for retail investors, the research firm pointed out the net purchases of RM178 million was the highest in a week for this year, while their participation was moderate at RM942 million, as MIDF Research believed that most retailer investors still observed on the sidelines.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in a report said the net amount of shares purchased by foreign investors was RM134 million while retailers bought RM178.3 million of shares.
It explained that foreign investors and retail investors bought up the shares of selective counters which share prices have declined and viewed as a ‘bargain’.
At the same time, the research firm observed that local institutions were net sellers, selling a net amount of RM312.3 million of equities last week.
Additionally, it noted that while prices of some shares dropped, investors classified as ‘foreign’ had been snapping up Malaysian equity on Bursa Malaysia last week.
It observed that Tenaga Nasional Bhd (TNB) has attracted the highest net money inflow of RM25.69 million while the company’s share price was unchanged for the week.
Interestingly, MIDF Research noted TNB is expected to announce its financial year 2014 (FY14) quarterly results due by this month as the power utility could benefit from favourable fuel costs.
The research firm pointed out that the rationale for investors purchasing the company’s shares could be attributable to buying ahead of TNB’s financial results announcement in anticipating of better financial performance for FY14.
Furthermore, MIDF Research observed that Kuala Lumpur Kepong Bhd’s shares (KLK) has attracted the second highest money inflow with RM10.36 million purchases as investors advocate buying the company’s share price on weakness.
It added that Hap Seng Consolidated Bhd pulled in the third highest net money inflow of RM5.8 million while the company’s share price movement has beaten the performance of the FBM KLCI by 2.24 percentage points last week.
As for money outflow, MIDF Research observed that investors took profit by selling shares of Nestle (Malaysia) Bhd which recorded the largest net money outflow for last week, amounting to RM33.18 million.
Additionally, the research firm noted DiGi.com Bhd’s share price registered the second largest net money outflow of RM12.36 million as investors also sold its shares to take profit.
The company shares which recorded the third net outflow was Sime Darby Bhd (Sime Darby) of which investors sold RM5.81 million.
The research firm noted the news of Sime Darby’s proposed to buy Kulim Bhd’s New Britain Palm Oil Ltd (NBPOL) has triggered investors to offload certain amount of the company’s shares although it was a positive move which could enhance Sime Darby’s earnings for the long term.
For the week ended October 10, MIDF Research observed foreign investors were net buyers of local equities in three out of the four trading days last week, despite shorter trading days due to the Hari Raya Haji holiday last Monday.
As for retail investors, the research firm pointed out the net purchases of RM178 million was the highest in a week for this year, while their participation was moderate at RM942 million, as MIDF Research believed that most retailer investors still observed on the sidelines.