This article first appeared in The Edge Financial Daily on December 5, 2017

KUALA LUMPUR: Foreign funds continued to enter Bursa Malaysia last week at an intensified level during the holiday-shortened trading week, according to MIDF Research.

Based on preliminary data from Bursa which excluded off market trades, international investors bought RM273.3 million net of Malaysian equities last week, which is more than three times the amount acquired in the preceding week which was RM86.6 million net, it added.

Last week’s inflow brought the year-to-date foreign purchase to RM9.37 billion, up from RM9.1 billion in the week before.

“Foreign investors were net buyers on all four trading days last week — the longest buying binge since September. [Last] Monday recorded the highest amount of foreign buying at RM92.2 million net amid the rally in crude oil prices in the week before,” said MIDF Research in its weekly fund flow report yesterday.

It noted that foreign buying dropped to RM31.3 million net last Wednesday as investors stayed on the sidelines as they waited for Sime Darby Bhd’s trading to resume after a three-day suspension and the debut of Sime Darby Plantations Bhd and Sime Darby Property Bhd last Thursday.

“Another possible explanation for [last] Wednesday’s reduced foreign buying could be North Korea’s missile launch,” it said.

Nonetheless, MIDF Research said foreign investors upped their ante last Thursday as they acquired RM62.8 million net as positive quarterly earnings buffered the fall of Sime Darby’s spin-off entities on the first day of trading.

“November is the fourth month of foreign selling this year, but it is noteworthy that the level of attrition has shrunk to RM15.4 million net compared with the previous months which range from RM200 million to RM700 million,” said MIDF Research.

Foreign participation spiked last week as the foreign average daily trade value (ADTV) soared by 192% to RM2.5 billion due to the rebalancing of the MSCI index.

In contrast, the retail market was rather subdued as the retail ADTV remained below RM850 million for the second week running, said MIDF Research. Globally, benchmarks around the world were mixed amid recent political developments from the US.

Wall Street finished the week on a firm note with the Dow Jones and S&P500 leading gainers worldwide. Both indices posted gains above 1.5% on a weekly basis.