KUALA LUMPUR (June 5): Foreign buying of Malaysian equity tapered to RM215.8 million net in the open market last week, compared with RM223.7 million accumulated the week before, according to MIDF Research.

In its weekly fund flow report today, the MIDF Research Strategy team said foreign funds remained net buyers of Malaysian stocks by virtue of the heavy purchases on Friday.

The team said there was some outflow in the first three days of the week as the month of May came to a close.

"However the amount was small, not exceeding RM100 million per day, reflecting incremental changes in the MSCI weightings affecting Malaysia.

"The selling reversed on Thursday and by Friday, foreign investors returned in full force," it said.

It said although the amount was still relatively modest, the foreign buying streak has now stretched to 17 straight weeks.

For the month of May, cumulative foreign net purchases amounted to RM1.47 billion, lifting the cumulative year-to-date number to breach the RM10 billion mark at RM10.14 billion.

MIDF Research said foreign participation remained vibrant.

It said foreign average daily trade value (ADTV) surged to RM1.95 billion, the highest since a year ago.

The research house said the surge was mostly driven by the staggering RM5.78 billion daily traded value on Wednesday.

It said this was a common trading pattern due to the implementation of the new MSCI weighting the day after.

The research house said that in contrast, the retail market had a blip.

It said the retail ADTV declined by 30.2%, going below RM1 billion to RM887.9 million.