Net inflow of foreign funds into Bursa Malaysia continues

  • Markets
  • Monday, 06 Jan 2020

KUALA LUMPUR: Foreign funds continued to be net buyers on Bursa Malaysia for the third consecutive week, according to MIDF Research.

“Based on data from Bursa, international investors acquired RM28.6mil net of local equities during the holiday-shortened week compared to RM69.9mil net bought in the week before,” MIDF said in its weekly fund flow report.

The research house said it was a good start to the week for Bursa as foreign funds snapped up RM42.9mil net of local equities on Monday.

The local stock barometer even rose 0.3% higher to close at 1,615.7 points on the same day, a level not seen in nearly five months.

“The last trading day of 2019 then saw an exodus of foreign funds amounting to RM196.2m net, dragging the local bourse by 1.7% to settle below the 1,600 mark at 1,588.8 points despite Trump agreeing to sign a trade deal on Jan 15, 2019,” it said.

As markets reopened on Thursday after the New Year break, international funds made a decent return to Bursa, acquiring RM14.9mil net of local equities.

Offshore investors may have taken cue of Malaysia’s manufacturing Purchasing Manager’s Index (PMI) which edged up to 50 in December 2019, the first expansion since September 2018.

MIDF said international funds later upped the ante in buying activity to purchase RM167.0mil net of local equities on Friday, the largest daily foreign net inflow in more than two months.

“In 2019, foreign investors sold RM11.14bil of local equities from Malaysia, lower compared to RM11.69bil seen in the previous year,” the research house said.

“While the total foreign net outflow from Malaysia was little changed in 2019 and remained the largest amongst the Asean markets we monitor, this was no match for the massive foreign net selling of RM19.49bil seen in 2015,” it added.

In terms of participation during the holiday-shortened week, it was no surprise that foreign investors experienced largest gain in average daily traded value (ADTV) amongst the other investor groups, increasing 59.6% but was still below the RM1bil mark

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Bursa Malaysia , fund flow , MIDF


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