MIDF: Foreign investors return to Bursa
KUALA LUMPUR: Offshore investors slowly made a comeback to Bursa Malaysia during the three-day trading sessions last week, said MIDF Research.
It said international funds snapped RM2.6 million net worth of local equities last week, the smallest weekly foreign net inflow recorded so far this year.
Malaysia bucked the regional trend by being the only country to have attracted inflows last week among the four Asean markets, said MIDF Research.
“Foreign funds heavily withdrew RM349.8 million net from Bursa on Wednesday as markets reopened after the long weekend, dragging the local bourse to 1,785 points, the lowest close in 18 trading days.
“We noted that last Wednesday’s selloff was in conformity with other peers as investors were jittery on China seeking permission from the World Trade Organisation to impose trade sanctions on the United States.
“Nonetheless, the five-day selling streak on Bursa was snapped on Thursday as offshore funds bought RM174.4 million net local equities, the highest in 22 trading days amid the US’ plans to reignite trade talks with China,” said MIDF Research in its weekly fund flow report yesterday.
Foreign net buying inched higher to RM177.7 million net on Friday as investors tracked gains from Wall Street’s technology rally overnight which pushed the S&P500 index to its fourth consecutive day of gains amid the release of Apple’s new products.
MIDF Research said the ringgit, meanwhile, appreciated 0.15 per cent to its strongest level since September 3, which led to its first weekly gain in 12 weeks.
As of last Friday, the year-todate outflow from Bursa stood at RM9.25 billion, offsetting slightly more than 90 per cent of the total foreign net inflow seen last year.
“Notwithstanding this, Malaysia still retained its position as the nation with the second lowest foreign outflow among the four Asean markets that we monitor,” said the firm.