Foreign funds inflow intensified, highest since September 2018


KUALA LUMPUR: Foreign investors continued hitting the buy button, for equities listed on Bursa Malaysia, according to MIDF Research.


In its weekly fund flow, MIDF Research said foreign investors turned buyers after a short selling mode on Monday, ending the week with net positive.


“They acquired RM417.3mil, net of local equities last week, about 16 times the net inflow in the previous week,” MIDF said, adding that this was the highest inflow recorded since September 2018.


Foreign investors turned buyers starting in the last two weeks, after nine consecutive weeks as sellers.


Foreign investors first bought RM51.7mil net on Tuesday followed by a net total of RM378.0mil for the rest of the week.


The net buying quantum peaked on Friday, on renewed trade optimism.


It was reported by WSJ that the U.S is considering measures to roll back tariffs on Chinese products, which helped to offset the fears of a global economic slowdown after disappointing Chinese trade data.


Notably, Chinese exports and imports recorded a drop in December, stemmed from the trade war impact.


“So far in 2019, foreign funds bought RM424.5mil net or US$103.4mil net of local equities.


“In comparison to the other three Asean peers we monitor, namely the Philippines, Indonesia and Thailand, Malaysia has the lowest foreign net inflow on a year-to-date basis,” MIDF said.


The research house said despite the inflows into Bursa Malaysia, participation rate among the various group of investors recorded a decline across the board.


MIDF said foreign average daily traded value (ADTV) dipped 20.7% to settle below the RM1bil level. Retail market and local institutions ADTV followed suit, recording 14.9% and 17.0% respectively.


“Positively, retail market’s ADTV still remain above its healthy level of RM800mil,” it added.



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