Foreign funds net buyers on Bursa despite US-China spat

PETALING JAYA: Foreign funds emerged as net buyers on Bursa Malaysia last week despite escalating trade tensions between the US and China which led to fund outflows in other Asean markets.
Malaysia was the only beneficiary of inflows among four Asean markets tracked by MIDF Research, including Indonesia, Thailand and the Philippines.
“Based on preliminary data from Bursa which excluded off-market deals, the net amount snapped up by foreign investors last week was RM328 million net, offsetting the RM301.3 million net disposed of in the preceding week,” it said in a note today.
The research house noted that the first day of the second started with an attrition worth RM40.6 million net on Monday, as investors were cautious regarding the timing of the 14th General Election (GE14).
“The level of foreign attrition later peaked on Wednesday at US$90.1 million net, as investors digested China’s move to impose a tariff of 25% on US$50b worth of US products.”
MIDF Research said foreign investors made their way back to Bursa the next day, acquiring RM158.9 million net of local equities amid news of possible talks between the US and China.
“It is noteworthy that foreign investors still entered Malaysia at a higher pace of RM212 million net on Friday despite threats by President Trump to slap US$100 billion in additional tariffs on China.”
Year-to-date, foreigners have accumulated RM2.53 billion net of local equities. Foreign participation improved as the foreign average daily trade value (ADTV) rose 13% to settle above RM1 billion. The retail market was also vibrant with the ADTV rising 13% to RM953 million.