KUALA LUMPUR (Jan 14): Foreign funds mopped up RM25.5 million net of local equities last week, compared to disposing of RM54.4 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weeky fund flow report today, MIDF Research’s Adam M Rahim said Monday recorded a foreign net outflow of RM86.3 million, the highest in nine trading days while the local bourse gained 0.56% to close at 1,679 points.

He said the level of foreign net selling slightly eased on the next day to RM75.9 million.

“Wednesday was the turning point for the week as foreign investors bought RM16.4 million net, snapping three days of foreign selling.

“This was in conformity with other Asian peers that we track such as Taiwan, South Korea, Indonesia and the Philippines,” he said.

Adam said the return of foreign investors to Malaysia was inevitable amidst the regional upbeat sentiment from the three-day discussion between the US and China.

He said foreign investors gradually increased their holdings on stocks listed on Bursa Malaysia thereafter until the foreign net buying level reached RM106.7 million on Friday itself.

This is the highest daily foreign net inflow in nearly a month with much of the support not just coming from the progress in US-China trade relations, but also the advance in Brent crude oil prices amidst growing optimism over OPEC production cuts.

“So far in 2019, foreign funds bought RM7.2 million net or US$1.9 million net of local equities.

“In comparison to the other two ASEAN peers we monitor, namely the Philippines and Indonesia, Malaysia has the lowest foreign net inflow on a year-to-date basis,” he said.

Meanwhile, Adam said Thailand is the only ASEAN peer with a foreign net outflow amounting to US$175.7 million.

He said the participation rate amongst the various groups of investors saw a stark improvement across the board to reach a healthy level.

For instance, he said the average daily traded value (ADTV) for foreign investors jumped by more than 80% for the week to reach RM1.2 billion, the highest in six weeks.