KUALA LUMPUR (Feb 19): Foreign investors returned to Bursa Malaysia last week after the huge sell off totaling RM1.75 billion in the preceding week, and bought RM4.50 million of Malaysian equity ahead of the Chinese New Year break, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said foreign funds were net buyers on all trading days except Monday, which saw an attrition of RM230.3 million net.

“Meanwhile, foreign buying was the highest on Tuesday at RM112.7 million net with trading value exceeding RM1.5 billion, the highest in four trading days.

“On Wednesday, the announcement of Malaysia’s gross domestic product (GDP) expanding by 5.9% year-on-year in 2017 compared with a 4.2% expansion in 2016, saw the FBM KLCI close at a four-day trading high of 1,835 points. 

“Nonetheless, foreign buying only stood at RM62.4 million net, the second lowest during the week, as foreigners remained anxious ahead of the U.S inflation data,” he said. 

Adam said the FBM KLCI inched higher to 1,838 points on Thursday as investors shrugged off strong U.S inflation data, but foreign buying declined further to RM59.7 million net as foreign investors entered risk-off mode, right before the Chinese New Year holiday.

Overall, Malaysia bucked the trend with an inflow, as the Philippines, Thailand and Indonesia all experienced attrition, he added.

“Foreigners have so far acquired RM1.86 billion net in the first seven weeks of 2018, higher than the RM1.11 billion recorded during the same period in 2017,” he said. 

Although the foreign average daily trading value (ADTV) declined by 35% from RM1.61 billion in the week before to RM1.04 billion last week, Adam deemed foreign participation to be still healthy, given last week having been a short trading week and Thursday having been a half trading day.