KUALA LUMPUR: Foreign funds were seen nibbling on Bursa Malaysia in the week ended Oct 7 and were net buyers at RM118.8mil after offloading -RM240.8mil the week before, says MIDF Equities Research.This saw the cumulative net foreign inflow for 2016 at RM2.42bil. However, the research house noted on Monday that this was a decline from the peak of RM6.47bil in April.“This means that since April, foreign investors have redeemed about -RM4bil. The amount is still modest relative to the -RM19.5bil and -RM6.9bil net outfl ow in 2015 and 2014 respectively,” it said in a research note on Monday.MIDF Research said foreign investors activity on Bursa remained suppressed last week, consistent with the trend elsewhere in the region and in East Asia.“Retail buyers retreated from the market, offloading -RM87.9mil. Retail avaerage daily trading volume plummeted -21% to only RM466mil, among the lowest this year,” it said.Tenaga Nasional registered the highest net money inflow of RM38.40mil last week.Nonetheless, the power giant's share price slightly underperformed the broader market as it added only 0.42% while the FBM KLCI moved up by 0.78% during the week under review.Ratings agency Moody’s assigned a provisional A3 to Tenaga’s US$2.5bil Islamic bonds.Digi.com came in second with RM17.48mil net inflow. Nonetheless, its share price also slightly underperformed the market benchmark with a 0.60% gain during the review week.However, MIDF Research also pointed out United Plantations saw the largest net money outflow of –RM6.83mil during the review week but its stock price outperformed the market benchmark with a 2.84% weekly rise vis-à-vis a slimmer 0.78% gain in the FBM KLCI.“Net money outfl ow amidst advancing share price may indicate a sell on strength stance among some investors,” it said.

Source: The Star October 10, 2016 01:07 UTC