KUALA LUMPUR: Malaysia is now the darling of the region in terms of global money flow into Asian equities, not to mention the most favoured Southeast Asian Emerging market in 2017, based on foreign liquidity flow on Bursa Malaysia, which remains elevated for the third week running.
This is according to MIDF Research’s weekly fund flow report for the week ended March 31.
The firm wrote that the KLCI broke the 1,750-point mark for the second time in two weeks on Tuesday (March 28), although it ended the week at 1740.09 points, down 0.28 per cent.
The firm also said that the ringgit continues to strengthen for a third week, appreciating 0.02 per cent against the US dollar.
"Foreign investors purchased RM1.14 billion net in the open market, excluding off-market deals last week – the second week running when the amount exceeded RM1 billion.
"Foreign investors have now been net buyers on Bursa for eight consecutive weeks. As of Friday (March 31), foreign net buying has extended for fifteen trading days, the longest since March 2016," it said.
The research house added that in March, cumulative foreign net purchases amounted to RM4.7 billion, which is quadruple the cumulative inflow in Feb 2017, which was RM956 million.
MIDF Research said that among stocks, Sime Darby Bhd, Tenaga Nasional Bhd and Gamuda Bhd are money magnets, as they saw active money inflows.
"Sime Darby registered the highest net money in flow of RM29.07 million last week. Its share price declined 1.28 per cent, underperforming against the FBM KLCI, which declined by 0.32 per cent during the week under review," the note said.
The firm also highlighted the fact that Sime Darby had signed a Memorandum of Understanding (MoU) for a joint venture with France’s Engie Services to provide technical and facility management services in the area of energy efficiency of critical buildings such as airports and hospitals.
On Tenaga Nasional, the firm noted that it recorded the second-highest net money inflow of RM20.51 million.
Gamuda, meanwhile, saw the third-highest net money inflow of RM19.55 million.