PETALING JAYA: Foreign funds continued to flow into Bursa Malaysia for the third week in a row, albeit at a slower pace, acquiring RM55.2 million net of local equities last week, compared to RM302.4 million net in the preceding week.
In a report by MIDF Research, offshore investors mopped up RM139.4 million net of local equities on Tuesday, when the market reopened after the long weekend.
“Support came from the rally on Wall Street overnight with the S&P 500 index hitting a record high amidst positive signs of trade talks and better-than-expected corporate earnings,” it said.
Foreign net buying activity slowed on Wednesday as international funds disposed RM18.2 million ahead of the US Federal Reserve’s policy decision, and the delay in the signing of the ‘phase one’ trade deal between the US and China.
The level of foreign net selling then accelerated substantially to hit RM117.7 million on Thursday following the third rate cut by the US Federal Reserve, before foreign investors made a comeback on Friday, accumulating RM51.7 million of local equities.
“Investors cheered the better-than-expected China manufacturing data in October 2019 which was the highest in almost three years with new orders rising at the quickest pace since January 2013,” said MIDF.
The month of October saw a total foreign net outflow of RM484.6 million, the second lowest monthly foreign net outflow so far for the year.
On a year-to-date basis, foreign funds have taken out RM8.38 billion of local equities from Malaysia, making up 72% of last year’s total foreign outflow of RM11.69 billion.
Meanwhile, in terms of participation, foreign investors saw the largest increase in average daily traded value (ADTV) of 28.9% to reach the RM1 billion mark.
