KUALA LUMPUR: The foreign funds were back in buying mode on Bursa last week, snapping up RM274.4mil net of local equities as compared to RM776.1mil, weekly average, since early this year, according to MIDF Research.
This marks the first net inflow after 25th consecutive week of foreign net selling.
“So far in 2020, foreign investors have sold RM19.7bil net on Bursa. In comparison with the other six Asian markets that we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis,” MIDF said in its weekly fund flow report.
Foreign investors bought RM54.6mil net of local equities last Monday, marking the start of a buying trend for the week.
On Tuesday, the only foreign net outflow for the week, at RM103.3mil, coincided with the Malaysian economic data release, construction output and retail sales which recorded dismal figures of -44.9% and -9.2% against forecasts of -10% and 3.5%.
“Foreign net inflow increased to RM105.4mil and RM197.61mil on Thursday and Friday last week respectively with the largest net outflow of the week on Tuesday,” MIDF said.
The research house noted that that the foreign turns net buyer was probably buoyed by the positive sentiments on another potential U.S. stimulus package, better-than-expected U.S. jobless claims, beating consensus by 2.6%.
This is on top of the positive newsflow in the oil & gas sector as EIA reported two consecutive crude oil draw in at 7.4m and 4.5m barrels for the past two weeks.
“In comparison to another three South East Asian markets that we tracked last week, Malaysia recorded the highest foreign net inflow while Thailand experienced the biggest outflow compared to the others,” MIDF said.
In terms of participation, the retail investors recorded a weekly decline 28.8% in average daily trade value (ADTV) to RM6.02bil while the foreign investors experienced the least weekly decline of ADTV by 14.47% to reach RM1.43bil.