KUALA LUMPUR: Foreign investors snapped up RM184.6 million net of local equities last week, compared to an outflow of RM276.6 million net in the week before.
Out of 42 weeks, Bursa Malaysia has seen 14 weeks of foreign net buying in 2019.
MIDF Research said Bursa saw a moderate foreign net outflow of RM10.7 million last Monday supported by the positive sentiments from the agreement between Washington and Beijing on the outlines of a partial trade accord and also the recently tabled Malaysian Budget 2020 in the preceding week.
“The level of foreign net selling inched higher to RM21.3 million on Tuesday as investors searched for further signs of a concrete trade deal to sustain their optimism.
“Nevertheless, foreign funds bought RM187.1 million net of local equities on Wednesday, the highest during the week,” it said in its weekly fund flow report today.
MIDF Research said the local bourse followed suit to close 0.6 per cent higher at a two-week high of 1,574.9 points.
“Investors cheered China’s US$28 billion cash injection into its financial system while Hong Kong unveiled measures to bolster growth,” it added.
Offshore funds continued to enter Bursa on Thursday at a pace of RM107.9 million net despite the weak US retail sales that added to expectations of interest rate cuts by the US Federal Reserve.
The firm said the mood had turned sombre on Friday as foreign investors sold RM78.3 million net following the China’s slowest economic expansion in nearly three decades on weaker investments and factory output.
So far in October 2019, foreign funds had taken out RM790.4 million net of local equities.
On a year-to-date basis, international investors have taken out RM8.69 billion worth of local equities, making up 74.3 per cent of last year’s foreign net outflow of RM11.69 million.
In terms of participation, foreign investors saw the largest increase in average daily traded value (ADTV) of 43.6 per cent to reach above the RM1 billion mark for the first time in four weeks.
MIDF Research said Tenaga Nasional Bhd had registered the highest net money inflow of RM4.40 million last week.
“Its share price declined 0.58 per cent for the week, underperforming the local bourse which had a 0.92 per cent weekly gain.
“It is notable that net money inflow amidst retreating share price may indicate a buy on weakness stance among some investors,” it added.