Tuesday, December 18, 2012

Direction of Fund Flow~

Foreign investors turned net buyers of Malaysia equities in the week ended Dec 14, 2012, accumulating RM678.7mil of equities, after three consecutive weeks of selling.

Foreign investors bought Malaysian equities in the open market relatively aggressively in early Dec 2012. On a net basis, foreign investors bought RM678.7mil. It was the sixth highest in a week in 2012.

The cumulative net inflow of foreign funds to Malaysian equity surged to a positive RM13.4bil. This was more than seven times the amount of RM1.9bil recorded for the entire 2011.

Since January 2010, cumulative net purchase of Bursa Malaysia-listed shares by foreigners stayed above the RM30bil mark at RM30.5bil.

Foreign funds bought every single day in early Dec 2012 to mid Dec 2012.

Local investors continued to withdraw from the market. Retailers were net sellers in mid Dec 2012, selling RM106mil. It added that participation rate stayed depressed, averaging less than RM500mil a day for the second week running at only RM474mil. As for local institutions, they sold an aggressive RM573mil, compared with a net purchase of RM235mil the week before. Daily average participation rate rose to RM1.6bil.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.