KUALA LUMPUR (Apr 16): Foreign investors bought RM324.7 million of Malaysian equity last week, slightly lower than RM328 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research’s Adam M Rahim said this was the eighth time in 2018 that weekly foreign buying levels exceeded RM300 million.
He said foreign buying activity occurred on four out of five trading days last week.
“Global investors made a strong start to the week as they mopped up RM188.3 million net of local equities on Monday.
“This was also the largest daily amount acquired during the week, coinciding with the KLCI adding 12.7 points as President Trump’s tweet expressed optimism on U.S-China relations which softened fears of a trade war.
“Foreign inflows slightly slowed down the next day to a tune of RM131.0 million net,” he said.
Adam said Wednesday then saw a decent net outflow of RM27.4 million amid escalated tensions over Syria which overshadowed the news of volume across Bursa exceeding 4 billion shares amid the timing of the 14th General Election which was made public on the day before.
Nonetheless, he said foreign investors returned to Bursa on Thursday and Friday but at a marginal level of RM17.5 million and RM15.3 million net, respectively.
He said it was noteworthy that Malaysia and Korea were the only markets among the seven Asian exchanges that we track to experience foreign inflows on Thursday and Friday.
Adam said that on a year-to-date basis, foreigners have so far accumulated RM2.85 billion net of local equities.
Meanwhile, foreign investors have been net buyers in 12 out of the 15 weeks in 2018 compared to 13 weeks during the same period in 2017.
He said both foreign and retail participation remained robust as both of their average daily trade value (ADTV) stood above the RM1 billion level last week.