Foreign interest in local equities continues with RM202.4mil net purchases

KUALA LUMPUR: Foreign funds continued to flow into Bursa Malaysia for the second consecutive week with a net purchase of RM202.4mil in equities.

The net buying over three out of the five trading days was underpinned by the US Federal Reserve's Federal Open Market Committee meeting last Wednesday, which saw the central bank tweaking its rate cut projections for the year.

MIDF Research noted a significant shift in the forecast rate cuts for the year as the FOMC raised its 2024 outlook for the Federal Fund Rate to 5.1% from 4.6% previously, signalling one rate cut from three to four previously.

According to the research firm, foreign investors recorded net buying amounts of RM10.7mil on Monday, RM135.1mil on Tuesday and RM197.4mil on Thursday.

They net sold RM82.7mil on Wednesday and RM58.1m on Friday.

The sectors which recorded the highest net foreign inflows last week were utilities (RM240.8mil), industrial products and Services (RM142.8mil), and technology (RM100.8mil) while the sectors with the highest net foreign outflows were Financial Services (RM330.9mil), plantation (RM126.2mil) and telecommunications and media (RM77.2mil).

Meanwhile, local institutions remained net sellers for the second consecutive week at a smaller quantum of RM25.9mil.

Local retailers were net sellers of local equities for a second straight week at RM176.5mil.

"Regarding participation, retail investors experienced an increase in average daily trading volume (ADTV) by 26.9%, local institutions by 14.1%, whereas foreign investors saw a decline of 4.8%," said MIDF in its weekly fund flow report.