KUALA LUMPUR: The nine weeks of foreign net selling has come to an end as offshore investors increased their exposure on stocks listed on Bursa Malaysia.
MIDF Research said foreign funds had mopped up RM25.5 million net of local equities last week.
Monday recorded a foreign net outflow of RM86.3 million, the highest in nine trading days, while the local bourse gained 0.56 per cent to close at 1,679 points.
The firm said the level of foreign net selling had slightly eased on the next day to US$75.9 million. Wednesday was the turning point for last week as foreign investors bought RM16.4 million net, snapping three days of foreign selling.
“This was in conformity with other Asian peers that we track such as Taiwan, South Korea, Indonesia and the Philippines.
“The return of foreign investors to Malaysia was inevitable amid the regional upbeat sentiment from the three-day discussion between the US and China,” MIDF Research said in its weekly fund flow report today.
Foreign investors gradually increased their holdings thereafter until the foreign net buying level reached RM106.7 million on Friday itself.
“This is the highest daily foreign net inflow in nearly a month with much of the support not just coming from the progress in US-China trade relations, but also the advance in Brent crude oil prices amidst growing optimism over The Organisation of the Petroleum Exporting Countries production cuts.”
Year-to-date, MIDF Research said foreign funds had bought RM7.2 million net or U$1.9 million net of local equities, while Malaysia had the lowest foreign net inflow on a year-to-date basis compared to the Philippines and Indonesia.
Meanwhile, Thailand is the only Asean peer with a foreign net outflow amounting to U$175.7 million.
Among the highest inflows in Bursa were Kuala Lumpur Kepong Bhd, CIMB Group Holdings Bhd and Hong Leong Financial Group Bhd, registering RM27.88 million, RM26.72 million and RM9.99 million respectively last week.
The highest money outflows included Hong Leong Bank Bhd, Nestle (Malaysia) Bhd and Public Bank Bhd, recording RM16.51 million, RM12.65 million and RM11.11 million respectively.
Ends