Foreign funds buy RM3.8b stocks in two weeks
Analysts, however, feel it is too early to conclude that the buying spree will be sustainable over the long term.
Kuala Lumpur: Foreign funds were net buyers of Malaysian stocks over the past two trading weeks.
Analysts, however, feel it is too early to conclude that the buying spree will be sustainable over the long term.
Since April 20, foreign funds bought shares worth RM3.8 billion, while they sold about RM3.4 billion worth of shares, which translated into a net purchase of about RM320 million worth of shares.
Foreign funds were net buyers for nine consecutive days beginning April 20.
During the period, the FTSE Bursa Malaysia KLCI rose almost 10 points, or 0.7 per cent, to 1,531.47. However, foreign funds were net sellers in the last three trading days.
Analysts said there were several factors which spurred the buying activities.
"I think the foreign funds are just mainly trading and buying blue chips on pullback. Perhaps, they are averaging down," said Jupiter Securities head of research Pong Teng Siew.
Other factors which may have sparked the buying spree were the underperformance of the Malaysian stock market, as compared to regional peers.
Foreign funds were mainly net sellers in late January 2011, as they were concerned about how emerging markets like Malaysia will cope with rising inflation.
Although the inflation fears have eased, investors' sentiment remained bearish as they are worried about the global economic outlook over the near to medium term, driven by below-than-expected data from the US as well as signs of slowing down in China.
"Nevertheless, I think the increase in the interest rate could help keep the foreign funds interested for a short while," said Pong.
Kuala Lumpur: Foreign funds were net buyers of Malaysian stocks over the past two trading weeks.
Since April 20, foreign funds bought shares worth RM3.8 billion, while they sold about RM3.4 billion worth of shares, which translated into a net purchase of about RM320 million worth of shares.
Foreign funds were net buyers for nine consecutive days beginning April 20.
During the period, the FTSE Bursa Malaysia KLCI rose almost 10 points, or 0.7 per cent, to 1,531.47. However, foreign funds were net sellers in the last three trading days.
Analysts said there were several factors which spurred the buying activities.
"I think the foreign funds are just mainly trading and buying blue chips on pullback. Perhaps, they are averaging down," said Jupiter Securities head of research Pong Teng Siew.
Other factors which may have sparked the buying spree were the underperformance of the Malaysian stock market, as compared to regional peers.
Foreign funds were mainly net sellers in late January 2011, as they were concerned about how emerging markets like Malaysia will cope with rising inflation.
Although the inflation fears have eased, investors' sentiment remained bearish as they are worried about the global economic outlook over the near to medium term, driven by below-than-expected data from the US as well as signs of slowing down in China.
"Nevertheless, I think the increase in the interest rate could help keep the foreign funds interested for a short while," said Pong.
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