BURSA MALAYSIA RANKS NO. 1 IN S-E ASIA FOR NET FOREIGN FUNDS’ INFLOW

Country’s strong economic outlook excites foreign funds

THE Malaysian equity market has recorded the highest inflow of foreign funds among Southeast Asian countries so far this year, driven by the country’s strong economic outlook.

As of Friday, a total of RM1.9 billion foreign funds flowed into the local stock market.

Last year, Malaysia attracted RM10.8 billion in net foreign inflows.

Net inflow into Bursa Malaysia saw its highest level in the first week of January at RM915.1 million since March last year.

Besides Malaysia, the only other Southeast Asian market that has recorded net foreign fund inflows is Vietnam, with RM1.6 billion.

The Indonesian, Philippine and Thai stock markets recorded foreign outflows of RM4.1 billion, RM1.3 billion and RM6.8 billion, respectively.

The inflows have provided support for the benchmark FTSE Bursa Malaysia KLCI to stay above 1,800 points.

The ringgit’s position has also benefited from the inflows and remains strong at below RM4 versus the US dollar.

Malaysian Rating Corp Bhd said portfolio investors moved into the Malaysian market to capitalise on the economic growth which is projected to be strong this year.

The firm expects inflows to continue in line with the recovery in the region.

The sharp decline of the ringgit after crude oil prices dropped in 2014 also provided investors the opportunity to benefit from the ringgit’s strengthening expectations, it said.

Meanwhile, Fundsupermart Research expects Malaysia’s economic fundamentals to remain strong and stimulate foreign funds into the local equity market.

It said private consumption is expected to remain a key driver of the economy and inflation is expected to moderate this year.