FOREIGN FUNDS BUY NET RM86.3M EQUITIES
Year-to-date outflow now only RM1.19b, says MIDF Research
AFTER five straight weeks of net selling, foreign funds finally returned to Malaysian stocks last week, said MIDF Research.
Based on Bursa Malaysia data, MIDF Research said foreign funds acquired RM86.3 million net local equities last week, the second lowest weekly foreign net inflow this year.
“The weekly foreign net buying last week pared the month-to- date foreign net outflow in March to RM1.4 billion,” said the research firm.
“Malaysia’s year-to-date foreign net outflow of RM1.19 billion is no longer the highest among the four Asean markets we monitor. Thailand has taken the spot with a year-to-date foreign net outflow of more than RM1.4 billion,” it added.
Bursa started the week on a strong note as foreign investors bought RM81.5 million of equities net, the most in a day this month, said MIDF Research.
It said the influx of foreign funds on Monday lifted the FTSE Bursa Malaysia KLCI by 0.6 per cent to 1,691 points, its highest close in 10 trading days.
It said international funds bought RM20.6 million net on Tuesday, coinciding with Brent crude oil price consistently remaining near the US$67 (RM272.69) per barrel level following Organisation of the Petroleum Exporting Countries’ commitment to maintain output cuts this year.
However, global funds shifted to the sidelines on Wednesday ahead of the United States Federal Reserve meeting outcome, resulting in a foreign net outflow of RM26.6 million, it added.
The firm said another concern on Wednesday was the possible pushback by China against US demands, even as President Donald Trump cited that talks were going well.
“Notwithstanding this, Malaysia attracted foreign net inflows of RM14.6 million on Thursday as the Fed implied that it would halt interest-rate increases this year and pivot away from policy tightening,” it said.
The ringgit then hit 4.061 against the US dollar, the strongest since July last year.
However, foreign net selling resumed on Friday with a RM3.9 million outflow after Malaysia’s consumer price index contracted 0.4 per cent year-on-year last month.