Foreign funds buy RM321mil in equities

KUALA LUMPUR: Foreign investors were back in buying mode on Bursa Malaysia, snapping up RM320.9mil net of local equities last week, according to MIDF Research.

In the prior week, foreign funds disposed of RM10.9mil net of local equities.

MIDF said last week’s buying was the largest weekly foreign net inflow in 32 weeks.

“The mood was sombre last Monday as foreign investors disposed of RM27.3mil net of local equities, ” MIDF said, adding that offshore investors continued to take out local equities on Tuesday albeit at a slower pace of RM8.3mil net.

Monday’s rally on Wall Street driven by waning tensions in the Middle East put a lid on selling activity that day.

The vibes turned positive on Wednesday as international funds flocked into Bursa Mlaaysia at a tune of RM41.4mil net ahead of the signing of the “phase one” US-China trade deal.

This was despite the fact that there will be no roll back on existing tariffs on China.

“Foreign net buying activity picked up further on Thursday to reach RM57.7mil net after the trade deal was sealed, ” MIDF said.

The deal required China to do more to crack down on the theft of American technology and corporate secrets by its companies and state entities, while outlining a US$200bil spending spree to close its trade imbalance with the United States.

“Friday was the highlight of the week as foreign net buying activity surged to RM257.2mil, the largest in a day since late May 2019, ” MIDF said.

It added that the positivity came from China’s GDP growth which reassured investors over the relative health of the country.

“On a month-to-date basis, January 2020 has seen a foreign net inflow of RM491.1mil.

“In comparison with the other three Asean markets we track, Malaysia has the smallest foreign net inflow on a year-to-date basis after Indonesia while Thailand and the Philippines have been recording foreign net outflows, ” MIDF said.

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