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.
KUALA LUMPUR: Malaysia bucked the regional trend over the last three-day trading week as the local stock exchange ended on Friday with a positive weekly net foreign inflow.
According to MIDF Research, it was the only country among the four ASEAN countries it monitored to have a positive net foreign inflow.
However, the research house said the net inflow amounted to RM2.6mil, the smallest amount recorded so far this year, due to a heavy selloff after the market reopened on Wednesday.
"Foreign funds heavily withdrew from Bursa on Wednesday at –RM349.8m net as markets reopened after the long weekend, dragging the local bourse to 1,785 points, the lowest close in 18 trading days.
"We note that Wednesday’s selloff was in conformity with other peers as investors were jittered by China seeking permission from the WTO to impose trade sanctions on the US," it said.
The local stock exchange's performance turned positive on Thursday, which ended a five-day selling streak as offshore fund bought RM174.4mil net of local equities.
It had been announced that Washington planned to reignite trade negotiations with China.
Foreign buying further increased on Friday to RM177.7mil net as investors tracked gains from Wall Street's overnight tech rally.
"The Ringgit also appreciated by 0.15% to its strongest level since 3rd September 2018, which led to its fi rst weekly gain in 12 weeks," said MIDF.
As at the end of the last trading week, the net outflow from Bursa Malaysia stood at RM9.25bil, slightly over 90% of the total foreign net inflow seen in 2017.
"Notwithstanding this, Malaysia still retains its position as the nation with the second lowest foreign outflow amongst the four ASEAN markets we monitor."
Despite the short week, the weekly average daily traded value (ADTV) amongst retail investors, local institutions and foreign investors increased.
The ADTV of foreign investors rose the most during the week by 41.6% to RM1.6bil, marking its 10th consecutive week of being above RM1bil.
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