KUALA LUMPUR: The buying of Bursa Malaysia equities following the US Federal Reserve's dovish announcement on Wednesday helped to narrow the net outflow of foreign funds from the domestic market.
In its weekly fund flow report, MIDF Research said the net foreign selling on Bursa Malaysia, for the fourth consecutive week, was 24.4% lower than in the week before at RM313.8mil.
Foreign investors had net sold domestic stocks from Monday to Wednesday, with a combined total of RM757.5mil.
The subsequent net purchase of RM443.7mil in local equities on Thursday and Friday after the Fed's open market committee meeting mitigated the outflow.
"In Malaysia, Bank Negara had also forecast a growth of 4% to 5% in 2024, supported by resilient domestic demand and an improvement in external demand," said MIDF.
The research firm reported that the sectors with the highest net foreign outflows as at Thursday were financial services (RM272.3mil), consumer products and services (RM123.8mil) and utilities (RM92.3mil).
The sectors with the highest net inflows were property (RM100.1mil), energy (RM21.6mil) and construction (RM14.1mil).
Meanwhile, local institutions remained net buyers for the fourth straight week with RM442.7mil while local retailers remained net sellers to the tune of RM128.8mil.
n terms of participation, the average daily trading volume (ADTV) rose among retail and institutional investors by 2.6% and 3.1% respectively while foreign investors saw a decline of 29.2%, said MIDF.
