Foreign inflows in line with Bursa’s movement

PETALING JAYA: Foreign investors continued to amp up their stakes on stocks listed on Bursa Malaysia last week, according to MIDF Research weekly fund flow report.

In fact, there has been four consecutive weeks of gradual foreign net inflow into Malaysia.

MIDF said based on preliminary data from Bursa Malaysia which excluded off market trades, foreign investors bought RM495.3 million net for the week ended Dec 15.

Besides that, MIDF said the FBM KLCI also took the market by surprise, leading other global benchmarks with a whopping 1.85% weekly gain.

It said the local benchmark closed above 1,750 points, a level not seen in more than a month.

MIDF added that the ringgit resumed its strengthening streak for the seventh week, appreciating 0.20% to finish at RM4.0795 against the greenback.

Meanwhile, the research house said the global equity markets ended the week mixed amidst a raft of central bank decisions by major economies.

“Despite a bout of uncertainty on the tax bill plans, all three major US benchmarks sealed fresh closing highs on Friday, each locking in weekly gains above 0.9% after Senator Marc Rubio expressed his support for the bill.

“The dollar index followed suit, advancing 0.47% the same day to settle at 93.932 points while marking its third straight week of gains,” it said.

MIDF noted that the Brent crude oil price dropped slightly by 0.27% for the week, to settle at US$63.23 per barrel, weighed down by US production which is reaching close to top producers such as Saudi Arabia and Russia.