KUALA LUMPUR: Foreign investors were net buyers of RM1.4bil in domestic equities last week, which was five times the sum of RM299.6mil of net inflow in the previous week.
In a statement, MIDF Research noted that Malaysia's latest trade report showed exports expanding at their fastest pace in nearly two years, due to strong demand for commodities and electronics.
Exports grew to RM131.2bil in July 2024, which was a 12.3% year-on-year increase.
Foreign investors flowed into the local on positive sentiment that the US Federal Reserve would commence lowering interest rates as minutes from the July meeting showed a "vast majority" of participants were in favour of a rate cut.
"Foreign investors were net buyers on every trading day except for Friday when there was a sell-off of RM1.6mil. The largest net foreign inflow occurred on Monday, totalling RM574.9mil," said MIDF.
Sectors with the highest net foreign inflow were financial services (RM1.3bil), utilities (RM118.9mil) and telecommunications and media (RM54.8mil). Conversely, sectors that recorded the most net foreign outflows were technology (RM140.2mil), consumer products and services (RM50.2mil) and property (RM25.9mil).
Local institutions, meanwhile, were net sellers on every day of the week, and net sellers of Malaysian equities for a second straight week with a net sale of RM1.12bil.
Local retailers were net sellers of RM284.4mil of local equities.
"The average daily trading volume (ADTV) showed increases across all investor classes. Foreign investors recorded the highest increase at 35.8%, while local institutions and local retailers recorded increases of 33.1% and 19% respectively," said MIDF.
