This article first appeared in The Edge Financial Daily, on April 19, 2016.

KUALA LUMPUR: Foreign liquidity flow on Bursa Malaysia continued to recede last week, but foreigners remained net buyers for the ninth consecutive week, the longest since the 11-week stretch between April and June 2014, according to MIDF Research.

In his weekly fund flow report yesterday, MIDF Research head Zulkifli Hamzah said foreign investors bought listed equities on Bursa amounting to RM364.6 million, down from RM439.4 million the week before.

This was estimated based on transactions in the open market, excluding off-market deals.

He said within the nine-week buying spree, foreign investors had mopped up a whopping RM7.2 billion net.

“The week started on an edgy note as foreigners sold RM79 million on Monday.

“However, the buying resumed on Tuesday and purchases exceeded RM100 million in the last three days of the week,” he said.

Zulkifli said last week’s foreign purchases boosted cumulative year-to-date net inflow to RM6.3 billion, albeit still relatively low compared to the RM19.5 billion net outflow for the whole of 2015 and RM6.9 billion in 2014.

He said foreign participation rate receded 13% after falling 16% the week before.

He explained that the average daily value of shares traded fell again to RM833 million, from RM960 million the week before.

He said it was the lowest this year.

“On Monday and Tuesday, participations were only RM631 million and RM694 million [respectively], the fifth and sixth lowest in a day so far in 2016.

“Local funds remained net sellers, offloading RM356 million last week, or almost RM6 billion cumulatively during the year to date,” he said.

Zulkifli said participation remained elevated, with average volume at RM2.1 billion, the seventh straight week that the number exceeded RM2 billion.

“Retail investors remained indifferent despite strong foreign buying.

“Retailers sold marginally RM8.4 million last week amid thin trading. They had been net sellers in six out of the last seven weeks,” he said.

Zulkifli said participation rate was the second lowest this year, with average daily trade amounted to only RM576 million. The lowest recorded was the Chinese New Year week, when average daily trade was only RM420 million.

On the region, Zulkifli said it was a relatively rosy week for equities, with all but one of the markets that were being tracked advancing.