Foreign investors return to Bursa after 12 weeks of net selling

KUALA LUMPUR: Foreign investors finally turned net buyers on Bursa Malaysia last week after 12 consecutive weeks of net selling.

The net inflow of RM570.9mil was triggered by the release of positive data on the domestic economy as well as an uptick in investor sentiment following the release of US economic data that showed further easing in inflation.

According to MIDF Research, foreign invetors began coming back into Bursa Malaysia on Wednesday with an inflow of RM84.2mil, coinciding with the release of Malaysia's wholesale and retail trade sector sales and manufacturing sector sales in May - both which showed annualised growth.

The net inflows intensified over the remainder of the week, culminating in RM468.9mil net foreign inflow on Friday, which MIDF said was the largest net inflow since Feb 28, 2022, prior to the Federal Reserve's interest rate hikes.

"The top three sectors that saw net foreign inflows were Technology (RM115mil), Transport and Logistics (RM102mil) and Plantation (RM97mil), while the only three sectors that posted net foreign outflows were Healthcare (-RM29.7mil), REITs (-RM10.2mil) and Energy (-RM7.1mil)," said MIDF.

Local institutional investors were net sellers after 12 straight weeks of net buying, with a total of RM308mil net sold last week.

Meanwhile, local retailers were net sellers to the tune of RM262.9mil.

In terms of participation, there was an increase in average daily trading volume (ADTV) by retailers (19.9%), local institutions (22.4%) and foreign investors (33.7%).

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