The Star Online: Business
The Star Online: Business |
- Foreign funds purchase of Malaysian equities declining
- KLCI down in early trade, BAT, KLCC, UMW fall
- CIMB Research remains Neutral on Axis REIT
| Foreign funds purchase of Malaysian equities declining Posted: KUALA LUMPUR: Foreign funds' purchase of Malaysian equities are declining, with the latest data showing they were net buyers of RM138.10mil in the week ended July 26, according to MIDF Equities Research. It said on Monday foreign funds bought Malaysian equities for the third consecutive week, but the amount was still marginal. "Foreign funds bought Malaysian equities in the open market (that is excluding off-market deals) last week amounted to net RM138.1mil, lower compared with RM168.3mil the week before," it said. MIDF Research said foreign investors were selling in the last two days of last week, which it said was understandable given risk aversion ahead of what could be a game changing week in the US with the FOMC meeting on Tuesday and Wednesday and many important economic statistics scheduled to be released this week. It cautioned that the selling could persist on Monday onwards. "As of last Friday, the cumulative net foreign purchase of Malaysian equity amounted to +US$5.0bil, based on transactions in the open market. The corresponding figures for Thailand and Indonesia remained in the negative territory, at –US$2.43b and –US$0.47b respectively. "In terms of participation, foreign investors continued to withdraw from the market. Last week, foreign participation rate (average daily gross purchase and sale) was only RM808mil, the lowest in 22 weeks. MIDF Research pointed out local investors also pulled back from the market, offloading RM127.9bil last week. After surging to RM1.22bil the week before, retail participation rate fell back to below RM1bil at RM989mil. "We expect the retail market, which has been buoyant after the trough at the end of June, to take a breather in this short term," it said. Local institutions continued to support the market last week with participation rate at RM2.0bil. It was the 10th week this year that the participation rate surpassed the RM2bil mark. "We expect local institutions to accumulate passively this week," said the research house. |
| KLCI down in early trade, BAT, KLCC, UMW fall Posted: KUALA LUMPUR: Malaysia's blue chips started the week on a quiet note on Monday, slipping into the red as BAT, KLCC and UMW fell in thin trade but the broader market was firmer with interest in seen in small cap stocks. At 9.25am, the FBM KLCI fell 1.47 points to 1,806.14.Turnover was 147.79 million shares valued at RM147.79. There were 153 gainers, 132 losers and 175 counters unchanged. Maybank KE Research said the obvious support areas for the KLCI were in the 1,723 to 1,807 zone. "The key resistance levels of 1,811 and 1,826 will see some profit-taking activities. The index may attempt a test of the 1,811 and 1,826 very soon, as US markets could sustain near all time highs," it said. BAT fell the most, down 42 sen to RM60.36 with just 200 shares done while Nestle lost 32 sen to RM68.28. KLCC and MAHB lost seven sen each to RM6.49 and RM6.73 while UMW shed six sen to RM14.28. KPJ was down 18 sen to RM7.07 while among property related stocks, Gabungan AQRS lost seven sen to RM1.44 and KSL six sen to RM2.08. Hong Leong Bank gained 16 sen to RM14.46 and Aeon 12 sen to RM15.72 while Lafarge added 10 sen to RM10.38 with 100 shares done. Water-related KPS rose seven sen to RM1.74 with 4.50 million shares done. |
| CIMB Research remains Neutral on Axis REIT Posted: KUALA LUMPUR: CIMB Equities Research remains Neutral on Axis REIT with a dividend discount model-based target price of RM3.74. It said on Monday Axis plans to acquire six assets with a total value of RM380m to RM400m this year. "It is currently in negotiations to acquire two of these assets, although it seems that their injection into the company will only be done towards the end of the year. We thus maintain our Neutral call on Axis, with an unchanged DDM-based target price of RM3.74," it said. CIMB Research said given that Axis's acquisitions are expected to only materialise later in the year, it believed there are no significant positive catalysts in the near term. Still, the current yields of 5.5-5.7% should help to hold up its share price at current levels. |
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