Foreign purchases on Bursa total RM1.57b so far this month

PETALING JAYA: Foreign investors have mopped up RM1.57 billion so far this month, lifting the cumulative year-to-date number to just shy of RM10 billion, despite a massive outflow of RM4.27 billion during the month.

Foreigners acquired RM223.7 million net in the open market (excluding off-market deals) last week, exceeding the RM192.4 million accumulated the week before. Although the amount was modest, the foreign buying streak has now stretched to 16 straight weeks.

“Concerns that inflow of foreign funds into local equity is dissipating should be neutralised as foreign investors continued to plough money into Bursa last week,” said MIDF Research in its fund flow report yesterday.

It noted the unease as foreign investors turned net sellers on Monday and Wednesday last week but the amount was marginal and foreign investors re-emerged strongly by Friday, buying at the highest pace in 11 days.

“This coincided with the ringgit appreciating to the highest level since Nov 9, which lifted sentiment that was earlier compromised by the slump in crude oil price,” it added.

It said that foreign participation remained healthy last week with foreign average daily trade value (ADTV) staying above the RM1 billion mark at RM1.06 billion, although it declined by 16% week-on-week.

Meanwhile, the retail market remained vibrant with ADTV above RM1 billion for the fifth week in a row at RM1.27 billion.

“Indeed, the RM1 billion mark had been surpassed in 11 out of the last 12 weeks. Retail investors bought moderately for the second week running,” said MIDF Research.