Foreign funds were net buyers of Malaysian stocks for the eighth consecutive months, despite the heavy selldown during the later part of May 2012. Foreign funds invested RM8.74 billion in stocks and sold RM8.29 billion worth of stocks in May 2012, making them net buyers of more than RM400 milllion. However, the figure is some 75 per cent lower than that registered in April 2012, when foreigners were net buyers of more than RM1.6 billion worth of stocks.
A part of the selldown is attributed to the eurozone crisis in the second half of 2012. Nevertheless, the buying picked up again during late May 2012 is partly because the selling was overdone and the slump had left many stocks at valuations that made them attractive to long-term investors.
Foreigners were net seller of RM81.1 million during the second half of May 2012. If not for the renewed interests in Malaysian stocks in the final three days of May 2012, which represents a net buying of RM315.89 million, the eight-month streak would have been snapped.
Monitoring foreign investors’ buying interests in Malaysian stocks is important as it reflects their risk appetite for the local market. Also, their investment decisions have a direct impact on the market’s movements.
The Malaysian stock market is trading at slightly over 15 times the price-earnings (PE) ratio, which is significantly higher than Singapore 's market of about nine times PE and slightly higher than Thailand 's market of about 14 times PE.
A part of the selldown is attributed to the eurozone crisis in the second half of 2012. Nevertheless, the buying picked up again during late May 2012 is partly because the selling was overdone and the slump had left many stocks at valuations that made them attractive to long-term investors.
Foreigners were net seller of RM81.1 million during the second half of May 2012. If not for the renewed interests in Malaysian stocks in the final three days of May 2012, which represents a net buying of RM315.89 million, the eight-month streak would have been snapped.
Monitoring foreign investors’ buying interests in Malaysian stocks is important as it reflects their risk appetite for the local market. Also, their investment decisions have a direct impact on the market’s movements.
The Malaysian stock market is trading at slightly over 15 times the price-earnings (PE) ratio, which is significantly higher than Singapore 's market of about nine times PE and slightly higher than Thailand 's market of about 14 times PE.
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