Bursa records second lowest foreign inflows

An analyst told Bernama that the macro factors expected to affect the FTSE Bursa Malaysia KLCI next week, includes the Group of Seven(G7) meeting as investors search for clues on the trade outlook, as well as the timing of the next interest rate hike by the US Federal Reserve (Fed) which meets on June 12.

PETALING JAYA: Bursa Malaysia recorded the second lowest foreign inflows last week since January, as the pace of foreign funds exiting Asia accelerated over the seven-day period.

In its weekly fund flow report, MIDF Research said Bursa Malaysia has managed to mark its fourth week of continuous inflows with a net inflow of RM24.6mil, even as foreign inflows into the local bourse took a breather last week.

While the lower foreign fund inflows was primarily attributed to the concerns on rising US Treasury yields, attrition on Bursa Malaysia gradually eased on April 26, on the back of stable crude oil prices.

“Global investors returned strongly to Malaysia on Friday, snapping up RM277.3mil net while the FBM KLCI was back above 1,860 points after two days remaining below that level.

“Among the four Asean exchanges we track, Malaysia was the only beneficiary of inflows that day. We opine that investors took cue from the positive vibes of the meeting between the two Koreas which also attracted the comeback of foreign funds into North Asia,namely South Korea and Taiwan.

“With only one-trading day left, April is set to be the first month of inflows since January 2018 for Bursa Malaysia as the month-to-date figure shows an inflow of RM1.26bil net. This brings the year-to-date inflow to RM3.46mil net,” noted the research house.

Despite the slower pace of foreign fund inflow, foreign participation in Bursa Malaysia has remained robust.

According to MIDF Research, the average daily trade value (ADTV) stood above the RM1bil level for the 16th week this year.

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