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Free Malaysia Today
16 hours ago
- Business
- Free Malaysia Today
Foreign investors pull RM6.21bil from Asian markets
MIDF Amanah Investment Bank Bhd said foreign net selling on Bursa Malaysia eased to RM387.4 million. (AP pic) PETALING JAYA : Foreign investors extended their net selling in Asian markets for a third consecutive week, recording an outflow of RM6.21 billion (US$1.47 billion), significantly higher than the previous week's outflow of US$170.8 million (RM723.47 million). MIDF Amanah Investment Bank Bhd's fund flow report for the week ended June 6, 2025, reported that only South Korea and the Philippines registered net foreign inflows, while all other countries saw net outflows. South Korea led the region with a strong net inflow of US$1.80 billion (RM7.62 billion), extending its foreign buying streak to two weeks, despite weak macroeconomic data showing its gross domestic product (GDP) growth flat on a year-on-year basis in the first quarter of 2025 (Q1 2025) and a 0.2% quarter-on-quarter contraction. The economic downturn follows political instability earlier this year, including the imposition of martial law and the impeachment of former President Yoon Suk Yeol. 'Newly inaugurated President Lee Jae-myung wasted no time in rolling out a US$22 billion (RM93.18 billion) emergency stimulus plan to address the economic malaise. 'Lee's administration, backed by a strong parliamentary majority, is also racing to install a full cabinet while navigating legal probes into Yoon's conduct, and the president has pledged swift fiscal intervention to aid households and jumpstart growth, which the Bank of Korea has revised down to 0.8% for 2025,' the report said. Meanwhile, MIDF Amanah noted that the Philippines recorded the second-highest inflow of US$9.8 million (RM41.50 million), reversing three consecutive weeks of foreign outflows. Regarding outflows, Taiwan posted the largest net outflow in the region at US$1.72 billion (RM7.28 billion), marking its third straight week of foreign selling. MIDF Amanah opined that geopolitical tensions remained elevated as Taiwan accused China of conducting 'highly provocative' joint combat readiness patrols involving 21 military aircraft and warships, and the continued escalation has put foreign investors on edge despite Taiwan's strategic dominance in the semiconductor sector. It stated that India reversed into a net outflow territory of US$1.02 billion (RM4.32 billion), ending its single-week streak of foreign buying. 'The Reserve Bank of India surprised markets with a 50-basis-point rate cut to 5.5%, citing subdued inflation and the need to support growth amid escalating US trade barriers,' it said. Indonesia experienced a net outflow of US$288.4 million (RM1.22 billion), ending its three-week streak of inflows. MIDF Amanah said the country's weak Q1 2025 GDP growth of 4.87% prompted the government to roll out a US$1.5 billion (RM6.35 billion) stimulus package targeting tourism, social aid and cash transfers. 'Vietnam posted a fourth straight week of foreign withdrawals with US$80.4 million (RM340.61 million) in outflows. 'During a US visit, Vietnam signed US$3 billion (RM12.70 billion) worth of memoranda of understanding for agrifood imports, seeking to rebalance trade and nudge the US toward reducing tariffs. 'Thailand posted the smallest net outflow at US$72.7 million (RM307.97 million), extending its foreign selling streak to three weeks. 'The government unveiled a US$405 million (RM1.72 billion) tourism stimulus package aimed at reviving visitor arrivals, particularly from China,' it added. On the domestic front, MIDF said foreign net selling on Bursa Malaysia eased to RM387.4 million, smaller than the previous week's outflow of RM1.02 billion. Foreign investors were net sellers on every trading day, with outflows ranging from RM5.4 million to RM162.83 million, with the largest outflow recorded on Wednesday at RM162.8 million, followed by Tuesday at RM121.2 million. MIDF said the top three sectors recording the highest net foreign inflows were telecommunications and media (RM16.4 million), technology (RM16.2 million) and property (RM8 million). 'The top three sectors that recorded the highest net foreign outflows were financial services (RM193.1 million), healthcare (RM130.9 million) and plantation (RM40.4 million),' it said. Local institutions continued their buying activities, with net inflows amounting to RM444.6 million, while local retailers reversed their two-week buying streak, recording an outflow of RM57.3 million. MIDF added that the average daily trading volume experienced a broad-based decline last week, with local institutions and local retailers seeing decreases of 8.1% and 15.8%, respectively, while foreign investors saw a plunge of 29.1%.
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
FGV shareholders should take Felda's offer, say analysts
The latest takeover offer marks Felda's second attempt to privatise FGV following a previous failed attempt in 2020. PETALING JAYA : Research houses are advising FGV Holdings Bhd (FGV) shareholders to accept the Federal Land Development Authority's (Felda) unconditional voluntary takeover offer at RM1.30 per share, stating it is a fair price. They said this second attempt by Felda to privatise the plantation group via a takeover offers a 'prudent exit opportunity' for investors. Analysts also pointed to limited upside potential for the increasingly illiquid stock if the offer does not succeed, and the likelihood of it languishing at its pre-announcement trading levels. For much of April, it was trading just below the RM1.10 level. It closed up 2 sen or 1.6% at RM1.30, valuing the group at RM4.74 billion. The current share price is a far cry from when FGV was listed on Bursa Malaysia 13 years ago to great fanfare. The initial public offering (IPO) raised about RM10.5 billion, giving it a market capitalisation in excess of RM16 billion. It was hailed as the world's second largest IPO that year after Facebook when FGV was listed in June 2012. On listing, it traded as high as RM5.46, a 20% premium to its IPO price of RM4.55. The shares have since plummeted 76% from that high, and 71% from the IPO price. MIDF Amanah Investment Bank advised shareholders to accept Felda's takeover offer, which would pave the way for FGV's delisting from Bursa. 'The RM1.30 offer price represents a 12% premium over its fair value estimate of RM1.16,' it said in a note today. It noted that Felda and its persons acting in concert (PACs) collectively hold approximately 86.93% FGV's total issued shares. 'The offer, priced at RM1.30 per share – similar to the bid made in 2020 – aims to raise their stake to at least 90%, which would allow Felda to delist FGV,' it added. TA Securities noted Felda's offer would be the second time investors are presented with an opportunity to realise the value of their investment through a cash offer. 'Given the potential price risk post GO (general offer), we advise minority shareholders to accept the offer. 'We advise investors to switch to other undervalued plantation stocks with more compelling stories, and potentially higher earnings growth, such as United Malacca Bhd,' it said in a note today. Hong Leong Investment Bank said Felda's offer price exceeds its sum-of-parts-derived target price (TP) of RM1.26. It has maintained its 'hold' call on FGV, with a revised TP of RM1.30 from RM1.26 previously, and kept its earnings forecasts unchanged. This marks Felda's second attempt to privatise FGV following a previous offer in 2020. The earlier offer, also at RM1.30 per share, failed to attain the 90% shareholder acceptance threshold for a mandatory compulsory acquisition. Analysts are optimistic the latest offer has a higher probability of success given that Felda and its PACs already hold almost 87% currently. The latest offer will remain open for a minimum of 21 days and is set to expire on June 15, 2025, unless extended or withdrawn. Full ownership of FGV will enable Felda to streamline operational decision-making processes, accelerate ongoing turnaround efforts, and better integrate its upstream and downstream activities with Felda's development objectives.
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Foreign investors post RM392mil net outflow after 4-week buying streak
MIDF Amanah Investment Bank Bhd said the largest outflow was recorded on Thursday at RM207.7 million, followed by Tuesday with RM80.5 million. (AP pic) KUALA LUMPUR : MIDF Amanah Investment Bank Bhd said foreign investors reversed their position to net selling after a four-week buying streak that saw cumulative inflows of RM3.29 billion. In its fund flow report for the week ended May 23, 2025, the investment bank said that the week closed with a net foreign outflow of RM392.3 million, bringing the year-to-date (YTD) net foreign outflow to RM9.8 billion. 'Notably, the past four weeks marked the only period of foreign inflows for the year. Foreign investors were net sellers on every trading day with outflow ranging from RM0.9 million to RM207.7 million,' it said. The investment bank said that the largest outflow was recorded on Thursday at RM207.7 million, followed by Tuesday with RM80.5 million. 'The three sectors that recorded the highest net foreign inflows were utilities (RM56.5 million), construction (RM54.4 million), and telecommunications and media (RM48.1m). 'The top three sectors that recorded the highest net foreign outflows were financial services (RM240.9 million), consumer products and services (RM139.1 million), and industrial products and services (RM86.2 million),' it said. Local institutions ended their four-week selling streak in Bursa Malaysia with net inflows amounting to RM222.9 million last week, bringing their YTD net buying to RM7.9 billion. MIDF said local retailers also reversed their five-week outflow trend, recording a net inflow of RM169.4 million. 'The average daily trading volume saw a broad-based decline last week. 'Local institutions and local retailers saw a decrease of 36.8% and 28.1%, respectively, while foreign investors saw a decline of 29.1%,' it said.
Malay Mail
21-05-2025
- Automotive
- Malay Mail
Malaysia's auto sales seen cooling in 2025 after record 2024, says HLIB
KUALA LUMPUR, May 21 — Hong Leong Investment Bank (HLIB) expects the automotive sector's total industry volume (TIV) for 2025 to normalise down to the 750,000-unit level, after achieving a record high of 816,700 units in 2024. The investment bank made the projection primarily due to declining order backlogs and easing new order intakes over the coming months. 'Nevertheless, there is still upside potential from exciting new model launches in 2025, along with more aggressive marketing activities to sustain sales by the various original equipment manufacturers, but at the expense of margins,' it said in a note today. The Malaysian Automotive Association (MAA) projected the 2025 TIV to be at 780,000 units. On Monday, the association reported an expected weak April 2025 sales of 60,527 units, a drop of 16.8 per cent month-on-month (m-o-m), mainly due to fewer active working days during the month of Raya holidays. This brings the year-to-date tally to 248,730 units, down 5.4 per cent year-on-year. Meanwhile, MIDF Amanah Investment Bank Bhd has maintained its 2025 TIV forecast of 792,000, which is broadly in line with MAA's projection of 780,000 units, as high base effects begin to set in. 'With the revised excise duty for completely knocked down vehicles now scheduled to take effect in January 2026, potentially raising car prices by 10 per cent to 30 per cent if the ruling is upheld, there may be some degree of frontloading in demand this year,' it said. It expects TIV in May 2025 to improve m-o-m, supported by stronger demand from East Malaysia ahead of the Kaamatan and Gawai celebrations, as well as a greater number of working days. This would be further supported by sustained interest in new models introduced earlier this year, it added. — Bernama
Malay Mail
19-05-2025
- Business
- Malay Mail
Foreign funds flood Bursa with RM1.68b in weekly net inflows as local investors continue to sell
KUALA LUMPUR, May 19 — Foreign investors continued their streak of net inflows on Bursa Malaysia, extending to a four-week buying streak, recording a net inflow of RM1.68 billion last week, nearly four times higher than the previous week's inflow of RM422.6 million. According to MIDF Amanah Investment Bank Bhd's Fund Flow Report for the week ended May 16, foreign investors were net buyers on every trading day with inflows ranging from RM185.6 million to RM797.4 million. It said the highest net inflow was recorded on Monday at RM797.4 million, followed by Tuesday at RM488.4 million. The three sectors that recorded the highest net foreign inflows were financial services (RM797.2 million), utilities (RM218.6 million), and telecommunications and media (RM179.7 million). 'The only two sectors that recorded net foreign outflows were energy (RM56.3 million) and real estate investment trusts (RM3.7 million),' it said. Meanwhile, MIDF stated that the local institutions also extended their streak of net selling to four consecutive weeks, with outflows amounting to RM1.35 billion last week, nearly 3.5 times higher than the previous week's outflow of RM397.8 million. It said the local retail investors extended their trend of net selling to the fifth week, with outflows increasing 13 times to RM330.2 million compared to RM24.8 million the week before. 'The average daily trading volume (ADTV) saw a broad-based increase last week. 'Local institutions and local retailers saw an increase of 50.9 per cent and 31.8 per cent, respectively, while foreign investors saw an increase of 42.6 per cent,' it said. — Bernama
