KUALA LUMPUR (Sept 24): International funds acquired RM514.8 million net of local equities last week compared to RM2.6 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said this was the largest weekly foreign net inflow recorded in 22 weeks.

“In fact, Malaysia attracted the biggest weekly foreign net infl ow amongst the ASEAN markets (Thailand, the Philippines and Indonesia) we monitor.

“A marginal foreign net attrition worth RM1.1 million was seen on Tuesday as sentiment was dampened by President Trump’s move to slap a 10% tariff on about US$200 billion worth of Chinese imports effective from Sept 24 until January 2019 when the levy is hiked to 25%.

“As a result, the local bourse lost 0.60% to close below 1,800 on the same day,” he said.

Nevertheless, Adam said offshore funds turned net buyers thereafter until the week ended.

He said foreign investors first bought RM56.5 million net on Wednesday followed by RM151.6 million net on Thursday.

Adam said Friday was the highlight of the week as foreign net buying doubled from the day before to RM307.8 million net, the largest in a day since 31 July 2018.

He said risk-on mood that day was driven by Wall Street’s rally to a record high overnight combined with Beijing’s plan for a broad import tax cut for the majority of its trading partners.

“With 5 more trading days left in September, the month has so far seen a foreign net outflow of RM146.0 million.

“Meanwhile, the year-to-date foreign net outflow from Bursa as of last Friday stood at RM8.7 billion or US$2.2 billion, which is still the second lowest foreign outflow amongst the 4 ASEAN markets we monitor,” he said.

Adam said foreign investors were more active than the retail market and local institutions as its weekly average daily traded value (ADTV) was 13.0% higher at RM1.9 billion, the highest in 14 weeks.

“Meanwhile the weekly ADTV of the retail market and institutions both declined by more than 10% but still remained above their healthy levels of RM800 million and RM2 billion, respectively,” he said.