PETALING JAYA: Offshore investors sold RM72 million net of local equities last week, marking the lowest weekly foreign net outflow in 16 weeks, said MIDF Research.
In its fund flow report, the research house said that selling was at a measurable pace last week, although foreign investors remained net sellers for the fifth consecutive week.
“Bursa started the week with a foreign net outflow of RM95.2 million on Monday while the local bourse was little changed at 1,622 points. The foreign net outflow occurred despite gains seen in the KL Construction Index following the reinstatement of the Bandar Malaysia project announced on Friday in the preceding week,” it said.
On Tuesday, international investors turned net buyers on for the first time in nine trading days after purchasing RM38.6 million net before advancing to RM105.9 million net on Wednesday.
According to MIDF Research, the surge of foreign funds into Bursa on Wednesday was partly attributable to the overnight record highs posted on Wall Street. The FBM KLCI followed suit to close 0.7% higher at 1,638 points.
On Thursday, the two-day buying streak came to an end as foreign investors sold RM113.7 million net as US equities slip from their record high.
On Friday, foreign funds continued selling off equities on Bursa but at a minimal level of RM7.6 million net. Sentiment on Friday was partially buoyed by the agreement of China to purchase more palm oil from Malaysia.
“With two more trading days left, April is set to be a month of foreign net outflow. International investors have so far disposed RM1.21 billion this month bringing the year-to-date foreign net outflow to RM2.56 billion,” it said.
