KUALA LUMPUR: Foreign funds upped the ante in acquiring stocks listed on Bursa, acquiring RM171.7mil of local equities last week, according to MIDF Research.
The research house said the amount was six times more than the amount bought in the week before.
MIDF said the first two days of the week saw international funds selling equity on Bursa but at a moderate level below RM25.0mil net.
Risk aversion was stoked by Iran’s comments that there is no more room for a diplomatic solution with the U.S following the imposition of new sanctions.
“International investors on Wednesday made a commendable return as they bought RM73.1mil net of local equities despite comments of Federal Reserve Bank of St. Louis which downplayed the need for aggressive U.S monetary easing,” the research house noted.
On Thursday, the level of foreign net buying tapered slightly to RM53.8mil. The dampened sentiment came from the news that substantial additional tariffs would be placed on goods on China by the U.S if no progress is made on a trade deal when both sides meet at the G20 meeting.
MIDF said Bursa Malaysia saw the highest foreign net inflow during the week of RM83.7mil on Friday ahead of the highly anticipated U.S-China presidential meeting on Saturday.
This was in contrast to other regional peers namely, Thailand, the Philippines and Taiwan which experienced foreign net outflows exceeding RM40.0mil.
“For the month of June 2019, foreign investors have acquired RM134.6mil net, the first foreign net inflow in five months.
“On a half yearly basis, the foreign net outflow from Malaysia stands at RM4.66bil which is lower than the RM6.8bil foreign net outflow seen during the same period last year,” MIDF said.
While foreign investors continued entering Bursa, foreign investors emerged as the investor group with the largest decline in terms of average daily traded value (ADTV) of 28.6% to RM1.03bil.
Nevertheless, the level of participation in three weeks is still deemed healthy as it exceeds RM1.0bil.