KUALA LUMPUR (Oct 29): Foreign investors' net purchase of Malaysian shares amounted to RM302.4 million last week after they bought and sold RM2.28 billion and RM1.98 billion worth of local equities respectively, MIDF Amanah Investment Bank Bhd said today, citing Bursa Malaysia data.

MIDF said in its fund flow report that in the preceding week, foreign investors' net purchase of Malaysian shares amounted to RM184.6 million.

"With three trading days left in October 2019, foreign funds have sold RM488 million net of local equities during the month. On a year-to-date basis, the foreign net outflow from Malaysia stands at RM8.39 billion.

"Bursa started the week on a rather sluggish note as international funds disposed [of] RM23.7 million net of local equities on Monday as hopes of further stimulus measures from China were trimmed by China's move of keeping its benchmark lending rate unchanged. Tables were turned on Tuesday as foreign funds acquired RM217.6 million net of local equities, the largest in a day since early June 2019. The local bourse followed suit to settle at 1,574.1 points on the same day, the highest close during the week.

"Positive vibes were sparked by indications from China that negotiations over an initial trade deal are progressing, raising the possibility that both nations' leaders could sign an agreement at a meeting next month in Chile," MIDF said.

On Wednesday, the level of foreign net buying of Malaysian shares declined substantially to RM1.7 million as British lawmakers rejected the government's proposed timetable for passing legislation to ratify its deal to exit the European Union, MIDF said.

According to MIDF, such sentiment had put the Oct 31, 2019 Brexit deadline in doubt.

"Nevertheless, foreign investors significantly increased their exposure on stocks listed on Bursa later on Thursday shown by a foreign net inflow of RM117.0 million. Risk-on sentiment was bolstered by the potential amicable resolution to the growing palm oil trade tensions between India and Malaysia.

"International funds turned net sellers on Friday ahead of the long weekend albeit at a measurable pace of only -RM10.3 million," MIDF said.