Year-to-date as of July 22, foreign investors had been net buyers for 18 out of the 29 weeks of 2022, with a total net inflow of RM6.11bil.
CGS-CIMB Research, in a note yesterday, pointed out that foreign shareholdings of Malaysian equities stood at only 20.6% as at end-June 2022.
Lau expects sectors like technology and banking to be among the first beneficiaries as foreign funds accelerate their purchase.
In comparison, foreign investors posted a net sell of RM3.2bil in 2021.
Experts said the undemanding valuations of local stocks and the relatively good fundamentals will help attract foreigners back to the Malaysian equi 欧冠竞彩推荐 ties universe.
“The Malaysian market is quite defensive, given the diversified nature of our stocks with the presence of high-yield stocks as well as technology and commodity-related companies,” Wong said, adding that such stocks provided refuge in times of uncertainty.
Local retailers have been net buyers for 19 out of 29 weeks of 2022. Year-to-date as of July 22, their net purchase value was RM1.78bil.
In the trading week ended July 22, foreign investors were net buyers for four out of five days, amounting to a net foreign inflow of RM191.3mil in the week.
On the contrary, local institutions were net sellers for 22 out of 29 weeks, with a total net outflow of RM7.89bil.
PETALING JAYA: It appears that foreign investors are slowly making their way back to Malaysian stocks, providing much-needed support for Bursa Malaysia at a time when local institutional funds have turned net sellers.
“Funds are sitting on cash, and once the current uncertainties in the economy start to reduce, the funds will start buying again,” he said.
“Given the weak ringgit against the US dollar, foreign investors are also looking at local stocks to gain returns on currency exchange,” he said.
“Malaysia has a very conducive investment environment and we are seeing a number of multinational companies (MNCs) announcing their investments in the country.
Wong mentioned that the foreign shareholding in the local bourse was currently at one of the lowest levels in Bursa Malaysia’s history.
Rakuten Trade head of equity sales Vincent Lau said there was a possibility for the momentum in foreign fund inflow to continue.
“Since then, the foreign shareholding level has fallen 4.1 percentage points from its peak of 24.2% in March 2018 to a trough of 20.1% in February 2022 due to political uncertainty.
He also said that foreigners typically preferred Malaysian stocks when “times are uncertain”.
“Foreign investors may see the opportunity to invest in local stocks, given the low foreign shareholding and low valuation,” he added.
“This means local companies would benefit from these foreign direct investments via increased order books by becoming vendors to the MNCs.
Rakuten Trade head of equity sales Vincent Lau said there was a possibility for the momentum in foreign fund inflow to continue.
“The declining trend in foreign shareholdings started in May 2018, specifically after the 14th general election on May 9, 2018 when Pakatan Harapan won a simple majority in Parliament, heralding the first change in government in Malaysia’s history.
“However, recent net buying by foreign investors has led to a rebound in foreign shareholdings to 20.6% as at end-June 2022,” it said.
This compared with two out of four days in the week ended July 15, two out of five days in the week ended July 8 and one out of five days in the week ended July 1.
While it is too early to tell, marke 欧冠竞猜平台 t experts think there is a glimmer of hope that foreign funds will increase their exposure in Malaysian stocks in the coming weeks.
For the week ended July 22, MIDF Research said the top-three sectors that saw the highest net inflows from foreigners were financial services, technology and utilities at RM141.9mil, RM39.2mil and RM37.5mil, respectively.
For the week ended July 22, MIDF Research said the top-three sectors that saw the highest net inflows from foreigners were financial services, technology and utilities at RM141.9mil, RM39.2mil and RM37.5mil, respectively.(File pic)
Speaking to StarBiz, fund manager Danny Wong noted that foreign funds had turned net sellers for the past six weeks, as investors reacted to the high inflation figures in the United States.
Wong, who is the CEO of Areca Capital, 欧冠竞彩官方, said investors retreated from Malaysian stocks in anticipation of higher interest rates in the United States to tame the soaring inflation.
“This, in addition to local stocks’ attractive valuations, would help attract foreign funds into Bursa Malaysia,” he said.
This compared starkly to the 27.4% foreign ownership back in April 2007.
For now, Lau noted that many institutional funds – be it local or foreign – are taking a wait-and-see approach.
“Only two sectors saw foreign net outflows, which were industrial products and services at RM145.6mil and transport at RM2.5mil,” the research house said in its weekly fund flow report.
“But now that investors are pricing in a 75-basis-point (bps) hike instead of 100 bps as previously expected, some foreign investors are coming back to Malaysia.
The weak ringgit could also entice foreign funds, according to them.
“Technology stocks still have good earnings growth prospects and banking stocks will benefit from the higher overnight policy rate,” he said.
CGS-CIMB Research, in a note yesterday, pointed out that foreign shareholdings of Malaysian equities stood at only 20.6% as at end-June 2022.
Lau expects sectors like technology and banking to be among the first beneficiaries as foreign funds accelerate their purchase.
In comparison, foreign investors posted a net sell of RM3.2bil in 2021.
Experts said the undemanding valuations of local stocks and the relatively good fundamentals will help attract foreigners back to the Malaysian equi 欧冠竞彩推荐 ties universe.
“The Malaysian market is quite defensive, given the diversified nature of our stocks with the presence of high-yield stocks as well as technology and commodity-related companies,” Wong said, adding that such stocks provided refuge in times of uncertainty.
Local retailers have been net buyers for 19 out of 29 weeks of 2022. Year-to-date as of July 22, their net purchase value was RM1.78bil.
In the trading week ended July 22, foreign investors were net buyers for four out of five days, amounting to a net foreign inflow of RM191.3mil in the week.
On the contrary, local institutions were net sellers for 22 out of 29 weeks, with a total net outflow of RM7.89bil.
PETALING JAYA: It appears that foreign investors are slowly making their way back to Malaysian stocks, providing much-needed support for Bursa Malaysia at a time when local institutional funds have turned net sellers.
“Funds are sitting on cash, and once the current uncertainties in the economy start to reduce, the funds will start buying again,” he said.
“Given the weak ringgit against the US dollar, foreign investors are also looking at local stocks to gain returns on currency exchange,” he said.
“Malaysia has a very conducive investment environment and we are seeing a number of multinational companies (MNCs) announcing their investments in the country.
Wong mentioned that the foreign shareholding in the local bourse was currently at one of the lowest levels in Bursa Malaysia’s history.
Rakuten Trade head of equity sales Vincent Lau said there was a possibility for the momentum in foreign fund inflow to continue.
“Since then, the foreign shareholding level has fallen 4.1 percentage points from its peak of 24.2% in March 2018 to a trough of 20.1% in February 2022 due to political uncertainty.
He also said that foreigners typically preferred Malaysian stocks when “times are uncertain”.
“Foreign investors may see the opportunity to invest in local stocks, given the low foreign shareholding and low valuation,” he added.
“This means local companies would benefit from these foreign direct investments via increased order books by becoming vendors to the MNCs.
Rakuten Trade head of equity sales Vincent Lau said there was a possibility for the momentum in foreign fund inflow to continue.
“The declining trend in foreign shareholdings started in May 2018, specifically after the 14th general election on May 9, 2018 when Pakatan Harapan won a simple majority in Parliament, heralding the first change in government in Malaysia’s history.
“However, recent net buying by foreign investors has led to a rebound in foreign shareholdings to 20.6% as at end-June 2022,” it said.
This compared with two out of four days in the week ended July 15, two out of five days in the week ended July 8 and one out of five days in the week ended July 1.
While it is too early to tell, marke 欧冠竞猜平台 t experts think there is a glimmer of hope that foreign funds will increase their exposure in Malaysian stocks in the coming weeks.
For the week ended July 22, MIDF Research said the top-three sectors that saw the highest net inflows from foreigners were financial services, technology and utilities at RM141.9mil, RM39.2mil and RM37.5mil, respectively.
For the week ended July 22, MIDF Research said the top-three sectors that saw the highest net inflows from foreigners were financial services, technology and utilities at RM141.9mil, RM39.2mil and RM37.5mil, respectively.(File pic)
Speaking to StarBiz, fund manager Danny Wong noted that foreign funds had turned net sellers for the past six weeks, as investors reacted to the high inflation figures in the United States.
Wong, who is the CEO of Areca Capital, 欧冠竞彩官方, said investors retreated from Malaysian stocks in anticipation of higher interest rates in the United States to tame the soaring inflation.
“This, in addition to local stocks’ attractive valuations, would help attract foreign funds into Bursa Malaysia,” he said.
This compared starkly to the 27.4% foreign ownership back in April 2007.
For now, Lau noted that many institutional funds – be it local or foreign – are taking a wait-and-see approach.
“Only two sectors saw foreign net outflows, which were industrial products and services at RM145.6mil and transport at RM2.5mil,” the research house said in its weekly fund flow report.
“But now that investors are pricing in a 75-basis-point (bps) hike instead of 100 bps as previously expected, some foreign investors are coming back to Malaysia.
The weak ringgit could also entice foreign funds, according to them.
“Technology stocks still have good earnings growth prospects and banking stocks will benefit from the higher overnight policy rate,” he said.
