KUALA LUMPUR (Sept 18): Foreign buying of Malaysian equity tapered to RM273.7 million last week from RM362.6 million a week earlier, according to MIDF Amanah Investment Bank Bhd Research.

In its weekly fund flow report today, the MIDF Research Strategy team said foreign investors had remained in the buying mode for the third week running but the intensity eased last week in tandem with lethargy in Asia.

"Global funds were net buyers during the rest of the week except on Wednesday but the one-day attrition was minimal, at only RM7.90 million net.

"Meanwhile, foreign investors snatched RM172.6 million net on Tuesday, the highest inflow in a day since June 14," it said.

The research house said the heavy foreign buying coincided with the FBM KLCI's 62-day high of 1,789 points ahead of Prime Minister Datuk Seri Najib Razak's meeting with US President Donald Trump.

It said the advance in the FBM KLCI was also spurred by the positive spillover effect from Wall Street, which saw S&P500 reached a new record level overnight amid the weakening effect of Hurricane Irma.

"The weekly inflow was in conformity with those seen by South East Asian peers, notably Thailand and the Philippines.

"With 29 weeks of foreign buying recorded so far this year, the cumulative year-to-date net inflow has reached RM10.99 billion, offsetting approximately 37% of net outflows in the past three years," it said.

MIDF Research said foreign participation rate took a breather last week.

It said gross trade on Wednesday decreased to just above RM700 million, dragging the foreign average daily trade value (ADTV) 20% lower to fall below the RM1 billion mark to RM891 million.

"In contrast, retail participation remained healthy for the week," it said.

The research house said the retail ADTV increased by 6% to hit RM939 million.

It said the last time the retail ADTV went above RM900 million was during the week ended May 26.