PETALING JAYA: Foreign funds acquired RM28.3 million net of local equities last week, the second lowest weekly foreign net inflow recorded so far this year.
According to MIDF Research, Bursa started last week on a rough note as foreign investors disposed of RM115 million net on Monday, as investors anticipated a slew of interest rate decisions, especially from the US Federal Reserve after stronger-than-expected US data fuelled bets that the central bank may have less cause to ease monetary policy.
Nevertheless, the level of foreign net selling tapered significantly to RM14.6 million net on Tuesday. This was partly attributable to the slight gains on Wall Street on Monday despite choppy trading amid the trade dispute and the possible effect on economic growth.
International funds made a decent comeback on Wednesday, acquiring RM125.2 million worth of equities on Bursa. Much of the risk-on mood was spurred by the prospect of an extended meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 Summit in Osaka, Japan, this week to relaunch trade talks after a month-long impasse.
Offshore investors were back in selling mode albeit at a measurable pace of RM20.9 million net on Thursday. Friday was the highlight of the week as a moderate foreign net inflow of RM28.3 million partially contributed to the 0.4% gain in the FBM KLCI to reach the highest close since March 20 this year, following the Federal Reserve’s signal that it was ready to lower interest rates for the first time since 2008.
“With one more week of trading left in June 2019, foreign investors have so far disposed of RM37.1 million net. On a year-to-date basis, the foreign net outflow from Malaysia stands at RM4.84 billion,“ MIDF said.
Foreign investors emerged as the investor group with the largest increase in terms of average daily traded value of 25.7% to RM1.45 billion, their strongest level of participation in three weeks.
