KUALA LUMPUR: International funds staged a solid comeback to Bursa Malaysia last week as they turned net buyers after four straight weeks of selling, MIDF Research said.
Based on preliminary data from Bursa which excluded off market deals, the research house said foreign funds accumulated RM322.7 million net of local equities last week.
This offsets the RM310.1 million net withdrawn in the preceding week, it added
“Foreign investors mopped up RM268.7 million net on Wednesday, the largest inflow in a day since September 21, lifting the local bourse 1.4 per cent higher to 1,709 points,” it said in a note.
The heavy inflows were in conformity with other Asian peers namely Taiwan and Indonesia as China’s securities regulator pledged to enhance market liquidity, it added.
Aside from the 2019 Budget optimism, MIDF Research said investors on Friday were comforted by the news that President Trump wants to reach a trade deal with China during the G20 summit this month.
MIDF Research said participation among foreign investors was robust as the weekly average daily traded value (ADTV) was 18.4 per cent higher compared to the ADTV in the retail market which advanced by only 0.3 per cent during the week.
The weekly ADTV of local institutional funds continued to drop for the second week running, staying below RM2 billion, it added.
The research firm said October recorded a total foreign net outflow of USD1.41 billion, compared to the RM66.3 million inflow seen in September 2018.
The year-to-date outflow now stands at RM9.77 billion, offsetting approximately 95 per cent of last year’s net inflow, it said.
“Notwithstanding this, Malaysia still has the second lowest outflow amongst the four Asean markets we monitor,” MIDF Research said.