Foreign fund inflow narrowed to RM212.3m last week, says MIDF Research

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KUALA LUMPUR (Oct 1): Foreign funds acquired RM212.3 million net of local equities last week, about half the net inflow in the previous two weeks, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Danial Razak said Malaysia was one of the two markets which attracted weekly foreign net inflow amongst the ASEAN markets besides Indonesia.

He said foreign investors first bought RM199.4 million net on Tuesday followed by RM72.3 million net on Wednesday.

"A highest weekly foreign net attrition worth RM37.9 million was seen on Thursday as foreign investors reacted to the interest rate hike by the Federal Reserve.

"The same trend was seen across ASEAN markets namely Thailand, the Philippines and Indonesia, with the highest foreign outflow of US$53.60 million recorded in Thailand.

"Nevertheless, offshore funds paced down the outflow on Friday recording only RM10.90 million net attrition," he said.

Danial said the month of September has seen a foreign net inflow of RM66.30 million.

"Meanwhile, the year-to-date outflow from Bursa as of last Friday stood at RM8.5 billion or US$2.2 billion, which is still the second lowest foreign outflow amongst the four ASEAN markets we monitor.

"Institutional investors were more active than the retail market and foreign institutions as its weekly average daily traded value (ADTV) was 7.3% higher at RM2.2 billion," he said.

Meanwhile, Danial said the weekly ADTV of the foreign market declined by more than 10% but still remain above their healthy levels of RM1 billion.

He said in the retail market, ADTV grew 5.6% to RM917.80 million, which is well above RM800 million.