Foreign buying returns on Bursa Malaysia after five weeks of outflows


KUALA LUMPUR: International funds finally made their way into stocks listed on Bursa after five straight weeks of net selling.


According to MIDF Research, foreign funds acquired RM86.3mil of local equities last week, the second lowest weekly foreign net inflow recorded so far this year.


In its weekly fund flow report, MIDF said Bursa started the week on a strong note as foreign investors bought RM81.5mil net, the largest in a day since Feb 18, 2019.


The influx of foreign funds on Monday lifted the FBMKLCI by 0.6% to its highest close in 10 trading days at 1,691 points.


International funds continued entering the Malaysian market to a tune of RM20.6mil net on Tuesday coinciding with Brent crude oil price consistently remaining near the US$67 per barrel level following OPEC’s commitment to resume output cuts 2019.


“However, global funds shifted to the sidelines on Wednesday ahead of the U.S Federal Reserve meeting, resulting in a foreign net outflow of RM26.6mil,” MIDF said.


Another concern which surrounded markets on Wednesday was the possible pushback of China against U.S’s demands even as President Trump cited that talks are going well.


Malaysia attracted a bout of foreign net inflows worth RM14.6mil on Thursday as the Federal Reserve implied that it would halt interest-rate increases this year and pivot away from policy tightening.


The Ringgit followed suit to appreciate by 0.12 to an eight-month high of USD/MYR4.061, the strongest since late July last year


“A measurable pace of foreign net selling was seen on Friday worth RM3.9mil following Malaysia’s consumer price index which contracted by 0.4% year-on-year for the second month in February 2019, continuing a deflationary trend,” it said.


The weekly foreign net buying last week has pared the month-to-date foreign net outflow in March to RM1.40bil.


“Malaysia’s year-to-date foreign net outflow of RM1.19bil or US$292.7mil is no longer the highest amongst the four Asean markets we monitor as Thailand took the spot with a year-to-date foreign net outflow of US$349.4mil or above RM1.40bil,” MIDF said.


Last week, Malayan Banking Bhd registered the highest net money inflow of RM32.24mil last week.  


Nestle (M) Bhd recorded the second highest net money inflow of RM28.84mil while Fraser & Neaves Holdings Bhd saw the third highest net money inflow of RM16.64mil.


On the other hand, KL Kepong Bhd saw the largest net money outflow of RM12.53mil last week.


Top Glove Corp Bhd recorded the second largest net money outflow RM4.58mil last week and Tenaga Nasional Bhd registered the third largest net money outflow of RM4.57mil.

Markets , MIDF , fund flow , Bursa Malaysia