KUALA LUMPUR (Feb 11): Foreign funds acquired RM163.2 million of Malaysian equities last week compared to RM146.8 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 the eve of Chinese New Year recorded a decent foreign net inflow of RM49.1 million net despite the half-day trading session.
“Meanwhile, the FBM KLCI index was little changed, only adding 0.08 points for the day following last Friday’s mixed performance on Wall Street with the decline in Amazon paring gains from a better-than-expected U.S jobs report.
“The momentum of foreign net inflows picked up to a tune of RM89.4 million as markets reopened from the Chinese New Year break on Thursday,” he said.
Adam said the increase in foreign buying was partially due to the 0.53% appreciation of the Ringgit against the greenback on Thursday, bucking the weakness in emerging Asian currencies, as it continues to track a recovery in crude oil and palm oil prices this year.
He said offshore funds continued to make their way into Malaysian equities for the fifth straight day on Friday at a slower pace of RM24.6 million net.
“It was noteworthy that other Asian peers such as South Korea, Thailand and Indonesia experienced a sizeable foreign net outflow on the same day amidst renewed trade concerns after President Trump said he will not meet Xi Jinping before the March 1 deadline.
“On a year-to-date basis as of last Friday, Malaysia has seen a foreign net inflow of RM1.19 billion, more than half of what was seen during the same period last year,” he said.
Adam said in comparison with the 4 ASEAN markets he tracks, Malaysia currently has the second lowest foreign net inflow with Indonesia remaining the leader with a foreign net inflow of US$997.7 million.
He said participation amongst all investor groups decline during the week.
“Foreign investors recorded the biggest weekly drop in average daily traded value, declining by 43.2% to drop below the RM1 billion mark,” he said.