KUALA LUMPUR: Foreign investors remained net buyers of local stocks on Bursa Malaysia last week, fuelled by heavy purchases on Friday.
MIDF Research said for the week, foreign investors bought RM215.8 million net in the open market (excluding off market deals), compared with RM223.7 million accumulated the week before.
Although the amount was still relatively modest, the foreign buying streak has now stretched to 17 straight weeks, the firm said in its weekly fund flow report.
For the whole month, cumulative foreign net purchases amounted to RM1.47 billion, lifting the cumulative year-to-date number to breach the RM10 billion mark at RM10.14 billion.
MIDF Research said there was some outflow in the first three days of the week as May came to a close.
However the amount was small, not exceeding RM100 million per day, reflecting incremental changes in the MSCI weightings affecting Malaysia.
The selling reversed on Thursday and by Friday, foreign investors returned in full force.
The firm said foreign average daily trade value (ADTV) surged to RM1.95 billion, the highest since a year ago.
“The surge was mostly driven by the staggering RM5.78 billion daily traded value on Wednesday. This was a common trading pattern due to the implementation of the new MSCI weighting the day after,” it noted.
In contrast, the retail market experienced a blip.
The retail ADTV declined by 30.2 per cent, going below RM1 billion to RM887.9 million, MIDF Research said.