Foreign buying remains high at RM1.08b

PETALING JAYA: The foreign liquidity tide on Bursa Malaysia remained elevated for the second week running, with a net purchase of RM1.08 billion in the open market last week, according to MIDF Research.

Following that, foreign investors have now been net buyers on Bursa Malaysia for seven consecutive weeks.

As of Friday, foreign net buying had extended for 11 trading days, said the research house.

So far, the month of March has recorded a cumulative foreign net purchase of RM3.23 billion.

“With five trading days left in the month, it is already higher than RM956 million in February and is the highest since March 2016,” it noted.

The strong foreign buying momentum is reflected by the fact that when equity markets around the globe retraced significantly last Wednesday, foreigners continued to pick up Malaysian shares.

The global retracement last Wednesday was spurred by concerns arising ahead of the Republican’s healthcare vote last Thursday, which was eventually withdrawn.

The research house also noted that foreign participation remained at an elevated level, with average daily trade value (ADTV) standing at RM1.26 billion, the second highest this year.

“The strong foreign buying momentum continues to enable local investors to lighten their position,” it said.

Year to date, local fund managers have disposed of RM3.86 billion net worth of shares. However, the retail market remained vibrant as retail ADTV increased by 1.3% to RM1.26 billion compared with the week before, marking the third week in a row it exceeded the RM1 billion mark.