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KUALA LUMPUR: Foreign funds emerged as net buyers in the week ended Dec 16 with net inflow of RM44mil, which was the highest level since Oct 21, says MIDF Equities Research.
With the direction of Malaysian equity foreign fund flow changing last week, the research house believed this could be signaling a recovering confidence from foreign investors towards Malaysian equity.
“On a cumulative year-to-date, the amount of net-selling from foreigners is -RM2.5bil. However, compared to 2015, the outflow amount is still considered low as only RM8.5bil has been redeemed since April. It was -RM19.5bil net outflow in 2015,” it said.
MIDF Research said foreign investors were net buyers on Tuesday with a build up of RM159.9mil, the highest since mid-October.
Despite the attrition on the remaining days which totalled -RM115.9m, foreign investors became net buyers last week, the first in eight weeks. The lowest attrition was on Friday of -RM1mil.
“Retail investors gross participation rate continued expanded slightly to RM378.5mil. However, the buying on dips conviction fell slightly to RM14.1mil compared to the prior week of RM21.1mil,” it said.
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