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Foreign funds keep Malaysia equity market on a roll

Malaysia's equity market is on a roll with foreign funds buying a total of RM11.4 billion net of local stocks in the open market between January and last Friday compared with RM13.7 billion for the whole of 2012. Migrate to MalaysiaFinancial services group MIDF Investment Research said within a week after the polling and nomination dates were announced, foreign investors bought RM747 million worth of Malaysian equities in the open market (excluding off-market deals). "That was solid 18 consecutive weeks of foreign buying, edging closer to the record 20 straight weeks set between June 18 and November 2 last year," the research house said. Among the seven Asian markets, Malaysia was the clear gainer for the third week running, hauling net US$246 million (RM748 million) via the open market (excluding off-market deals). Kuala Lumpur is going against the tide," MIDF said in its research report on fund flows for the week ended April 12. MIDF said with three weeks to go before polling day, foreign buying momentum appears to be taking a breather which, in its opinion, is a healthy consolidation. It expected another strong push in the run-up to May 5 election day. The nervous global equity market brought about by weaker US job figures in March did not deter foreign investors from continuing to add on to their Malaysian equity share holdings. The research house said there was some agitation among investors last Monday subsequent to the selldown on the preceding Friday. That started to clear last Tuesday, improving everyday until last Friday as net foreign buying peaked for the week to exceed RM200 million again. "Overall, net foreign purchases still averaged a respectable RM149 million per day last week compared with an average RM406 million in the preceding 10 trading days." Sentiment in the global equity markets weakened last week and this had caused global funds to exit Asian equities. However, selling was relatively light without much damage on prices., it added. MIDF said during the run-up to the election nomination day on April 20, the market may take a breather as uncertainty looms over seat allocations and the fate of various candidates. Up to the polling day, it expects the market to gyrate within a certain range and profit-taking to swiftly follow any buying-on-weakness spree. "The odds for a post-election rally are better than ever, in our opinion. MIDF Research has pivoted its expectations and outlook for the market on Barisan Nasional winning the election," it said. Source: http://www.btimes.com.my/Current_News/BTIMES/articles/20130416000654/Article/index_html

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