Foreign funds bought RM184.6m last week, says MIDF Research

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KUALA LUMPUR (Oct 21): Foreign investors acquired RM184.6 million of local equities last week on Bursa Malaysia, compared to disposing of RM276.6 million net in the week before, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said out of 42 weeks, Bursa has seen 14 weeks of foreign net buying in 2019.

“Bursa saw a moderate foreign net outflow of RM10.7 million on Monday supported by the positive sentiments from the agreement between Washington and Beijing on the outlines of a partial trade accord and also the recently tabled Malaysian Budget 2020 in the preceding week.

“The level of foreign net selling inched higher to RM21.3 million on Tuesday as investors searched for further signs of a concrete trade deal to sustain their optimism,” he said.

Adam said nevertheless, foreign funds bought RM187.1 million net of local equities on Wednesday, the highest during the week.

He said the local bourse followed suit to close 0.6% higher at a two-week high of 1,574.9 points.

“Investors cheered China’s US$28 billion cash injection into its financial system while Hong Kong unveiled measures to bolster growth.

“Offshore funds continued to enter Bursa on Thursday at a pace of RM107.9 million net despite the weak US retail sales that added to expectations of interest rate cuts by the US Federal Reserve,” he said.

Adam said the mood turned sombre on Friday as foreign investors sold RM78.3 million net following China’s slowest economic expansion in nearly three decades on weaker investments and factory output.

“So far in October 2019, foreign funds [have] taken out RM790.4 million net of local equities from Bursa.

“Meanwhile, on a year-to-date basis, international investors have taken out RM8.69 billion worth of local equities from Bursa, making up 74.3% of last year’s foreign net outflow of RM11.69 billion,” he said.

Adam said in terms of participation, foreign investors saw the largest increase in average daily traded value (ADTV) of 43.6% to reach above the RM1 billion mark for the first time in four weeks.