KUALA LUMPUR: Foreign investors turned net buyers of Malaysia equities in the week ended Dec 14, 2012, accumulating RM678.7mil of equities, after three consecutive weeks of selling, according to MIDF Equities Research.
The research house said on Monday foreign investors bought Malaysian equities in the open market relatively aggressively last week.
"On a net basis, foreign investors bought RM678.7mil. It was the sixth highest in a week this year," it said.
MIDF Research said for the year until last Friday, the cumulative net inflow of foreign funds to Malaysian equity surged to a positive RM13.4bil. This was more than seven times the amount of RM1.9bil recorded for the entire 2011, it said.
Since January 2010, cumulative net purchase of Bursa Malaysia-listed shares by foreigners stayed above the RM30bil mark at RM30.5bil.
"Foreign funds bought every single day last week. On Tuesday, foreign investors mopped up RM268mil, the seventh highest in day this year. Reflecting increased optimism, the rate of participation (average daily gross purchase and sale) rose 49% to RM988mil, from RM663mil the week before," it said.
MIDF Research said local investors continued to withdraw from the market. Retailers were net sellers last week, selling RM106mil. It added that participation rate stayed depressed, averaging less than RM500mil a day for the second week running at only RM474mil.
As for local institutions, they sold an aggressive RM573mil, compared with a net purchase of RM235mil the week before. Daily average participation rate rose to RM1.6bil, it said.