Foreign funds made a comeback after six weeks of net selling

  • Markets
  • Monday, 23 Dec 2019

KUALA LUMPUR: After six straight weeks of net selling, foreign funds had finally made their way into stocks listed on Bursa Malaysia, according to MIDF Research.

“Based on data from Bursa, international investors acquired RM72.9mil net of local equities last week, snapping the six-week foreign net selling spree, ” MIDF said in its weekly fund flow report.

The research house said Bursa began the week on the wrong foot as foreign investors sold RM85mil net on Monday, coinciding with the 0.1% decline in the local bourse to 1,569.4 points amidst renewed concerns on the U.S-China phase one trade deal.

Foreign net selling then inched lower on Tuesday to reach RM57.1mil net as investors digested developments of the preliminary deal between Beijing and Washington, where the exports to China from the U.S will be increased in addition to possible lowering of tariffs on Chinese goods.

MIDF said Wednesday marked the return of foreign funds into Bursa at a tune of RM113.6mil net after three straight days of foreign of net outflow.

“The foreign net inflow into Bursa was short-lived as foreign investors disposed RM29.3m net of local equities on Thursday.

“Notwithstanding this, international funds picked up RM130.7mil net of local equities on Friday, the largest foreign net buying in a day since the middle of November this year, lifting the FBM KLCI above 1,600 points for the first time in nearly a month, ” the research house said.

The heavy foreign net inflow was partially supported by the year-end window dressing activities.

“With less than two weeks before December ends, the month has so far seen a foreign net outflow of RM1.13bil.

“Meanwhile the year-to-date foreign net outflow from Malaysia as of last Friday has reached RM11.06bil, constituting 94.6% of last year’s total foreign net outflow of RM11.69bil, ” MIDF said.

In terms of participation, foreign investors saw the sharpest increase in average daily traded value (ADTV) amongst the other investor groups, gaining 17.7% to reach RM1.027bil.

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Bursa Malaysia , MIDF , fund flow


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