PETALING JAYA: International investors made a comeback on Bursa last week, acquiring RM72.9 million net of local equities, snapping a six-week selling spree, according to MIDF Research.
According to the note, on Monday, foreign investors sold RM85 million on Monday, coinciding with the 0.1% decline in the local bourse amid renewed concerns on the US-China phase one trade deal.
“Foreign net selling then inched lower on Tuesday to reach RM57.1 million as investors digested developments of the preliminary deal between Beijing and Washington, where the exports to China from the US will be increased in addition to possible lowering of tariffs on Chinese goods,” it said.
Wednesday marked the return of foreign funds into Bursa at a tune of RM113.6 million, however, that was short-lived as foreign investors disposed RM29.3 million net of local equities on Thursday.
“Notwithstanding this, international funds picked up RM130.7m net of local equities on Friday, the largest foreign net buying in a day since the middle of November this year, lifting the FBMKLCI above 1,600 points for the first time in nearly a month.
“The heavy foreign net inflow was partially supported by the year-end window dressing activities,” MIDF said.
With less than two weeks before December ends, the month has so far seen a foreign net outflow of RM1.13 billion.
Meanwhile the year-to-date foreign net outflow from Malaysia as of last Friday has reached RM11.06 billion, constituting 94.6% of last year’s total foreign net outflow of RM11.69 billion.
In terms of participation, foreign investors saw the sharpest increase in average daily traded value (ADTV) amongst the other investor groups, gaining 17.7% to reach RM1.027 billion.
