Foreign funds return to local market to the sum of RM394.5mil

KUALA LUMPUR: Foreign investors returned to Bursa Malaysia with net buying of RM394.5mil after two weeks of net selling.

MIDF Research said in its weekly fund flow report that the highest net foreign inflows were recorded in transport and logistics (RM152.9mil), industrial products and services (RM151.5mil) and technology (RM93.6mil).

Meanwhile, the sectors that saw the highest net foreign outflows were consumer products and services (RM91.1mil), construction (RM28.6mil) and plantations (RM27.2mil).

Local institutions remained net buyers of local equities with RM32.2mil of net purchases. However, local retailers were net sellers of RM426.7mil of equities.

"In terms of participation, there were increases in average daily trading volume (ADTV) among local retailers and local institutional investors by 14.1% and 5.8% respectively while foreign investors recorded a decline in ADTV by 6.7% last week," said MIDF.

Over the past week, global investor sentiment was buoyed by a slight slowdown in US job growth and the release of US unemployment data, which had risen to a rate of 4.1%, its highest in 2.5 years.

According to MIDF, the trend aligned with expectations that the Federal Reserve may begin reducing interest rates this year.

"Investors were further appeased when Fed chair Jerome Powell said significant progress has been made in bringing inflation down.

"While declining to commit to any timeline on rate cuts, Powell’s remarks seemed to suggest that the Fed could lower rates if inflation data continued its current trend of decline," it said.