‘Foreign investors have returned to Bursa’

KUALA LUMPUR: Global investors have returned to Malaysian shores after 13 uninterrupted weeks of foreign net selling on Bursa Malaysia.

MIDF Research said foreign net outflows had been gradually receding in the past three months, with RM5.6 billion net foreign selling in May, RM4.9 billion in June and RM1.7 billion last month.

It said Malaysia had the second lowest outflow of US$2.11 billion (RM8.45 billion) as of last Friday on a year-to-date basis, after the Philippines.

“The average daily traded value (ADTV) in the retail market dipped below the RM1 billion mark last week. The ADTV of foreign investors remains solid above RM1 billion at RM1.16 billion,” said MIDF Research in a report yesterday.

Based on Bursa Malaysia’s preliminary data, excluding off market deals, MIDF Research said global funds accumulated RM348.9 million net of local stocks last week and had been net buyers of Malaysian stocks for 15 of the 31 weeks so far.

“Offshore funds started last week with a marginal level of attrition of only RM39.2 million net,” it added.

MIDF Research said foreign investors mopped up RM343.5 million net last Tuesday, the largest inflow in a day since April 19.

It said the inflow was driven by Chinese Foreign Minister Wang Yi’s visit to Malaysia, which had increased prospects of better ties between the two countries.

Foreign net buying resumed on Wednesday, but at a slower pace of RM151.3 million, following the news the United States and China might revive trade negotiations to diffuse tensions.

“The FTSE Bursa Malaysia KLCI took cue of the news to jump 0.23 per cent to the highest close in 48 trading days at 1,788 points.”

Among the top 10 net inflows, IOI Corp Bhd, Malaysia Airports Holdings Bhd and Kuala Lumpur Kepong Bhd registered a net inflow of RM7.68 million, RM5.12 million and RM4.90 million, respectively, last week.

Among the top 10 net outflows, Tenaga Nasional Bhd, Public Bank Bhd and Dialog Group Bhd recorded a net outflow of RM34.20 million, RM19.07 million and RM8.89 million, respectively, last week.

The ADTV of foreign investors remains solid above RM1 billion at RM1.16 billion. MIDF RESEARCH