KUALA LUMPUR (March 20): Foreign investors purchased a whopping RM1.76 billion net last week, an amount not seen since May 2013, following the outcome of the 13th General Election (GE13), according to the MIDF Research Strategy team.

In its weekly fund flow report today, the research house said that the the last time the amount exceeded RM1 billion was in March last year.

“Foreign investors have now been net buyers on Bursa for six consecutive weeks.

“As of Friday, foreign net buying had extended for six trading days. Notably, the average amount mopped per day during the six days was RM305 million,” it said.

MIDF Research said that in March 2016, when trading on Bursa was this intense, the average amount mopped up was only RM264 million.

The research house said that on Friday, the buying turned into a frenzy.

It said foreigners acquired a massive RM816 million, the highest since May 7, 2013, two days after the GE13.

“Foreign participation also surged to a level not seen since May 2013. The average daily trade value (ADTV) surged to RM1.69 billion, a 71% increase compared with that in the preceding week.

“The return of foreign investors have accorded a much needed breathing space for local investors to lighten their position and realise profits,” it said.

MIDF Research said local institutions offloaded RM1.58 billion net last week.

It said since beginning of the year, local fund managers have disposed RM2.80 billion net.

“The retail market remained vibrant as retailers took advantage of the foreign liquidity avalanche to offload RM180 million. Retail ADTV surged to RM1.2 billion, second week in a row it exceeded RM1 billion,” it said.