FOREIGN BUYING AT RM514.8M
Offshore funds turned net buyers of local equities for week ended Sept 21, says MIDF
INTERNATIONAL funds acquired RM514.8 million net of local equities during the week ended September 21, the largest weekly foreign net inflow recorded in 22 weeks.
MIDF Research said Malaysia attracted the biggest weekly foreign net inflow among the Asean markets that it monitored — Thailand, the Philippines and Indonesia.
“A marginal foreign net attrition worth RM1.1 million was seen on Tuesday as sentiment was dampened by President (Donald) Trump’s move to slap a 10 per cent tariff on about US$200 billion (RM605.30 billion) worth of China imports effective yesterday until January next year when the levy will be hiked to 25 per cent.
“As a result, the local bourse lost 0.60 per cent to close below 1,800 that day,” it said.
Nevertheless, MIDF said offshore funds turned net buyers thereafter until the week ended.
They bought RM56.5 million net on Wednesday, followed by RM151.6 million net on Thursday.
Friday was the highlight of the week as foreign net buying doubled from the day before to RM307.8 million net, the largest in a day since July 31.
“Risk-on mood that day was driven by the Wall Street’s rally to a record high overnight, combined with Beijing’s plan for a broad import tax cut for the majority of its trading partners,” it said.
MIDF said with four more trading days left, this month had seen a foreign net outflow of RM146 million.
Meanwhile, the year-to-date foreign net outflow from Bursa Malaysia, as of last Friday, stood at RM8.7 billion, which remains the second lowest foreign outflow among the four Asean markets MIDF monitors.
MIDF said foreign investors were more active than retail players and local institutions as their weekly average daily traded value (ADTV) rose 13 per cent to RM1.9 billion, the highest in 14 weeks.
Meanwhile, the weekly ADTV of the retail market and institutions both declined by more than 10 per cent but still remained above their healthy levels of RM800 million and RM2 billion, respectively.