Foreign Inflow to Bursa Malaysia Surges to RM1.06bil Net

The flow of foreign funds into Bursa Malaysia accelerated 3.6 times from the week before to RM1.06bil net, which represents the largest recorded net inflow in over two years.

The jump in foreign buying interest in Malaysian stocks came in tandem with an increase in foreign inflow to regional markets, spurred on by improved risk appetite for equities.

"Foreign funds returned to Asia at a rate of US$1.09bil last week after two weeks of net selling, supported by strong net buying activities in Taiwan, tracking positive movement of tech stocks on Wall Street," said MIDF Research in its weekly fund flow report.

Recent developments whetted investor's appetite for equities, including the US payrolls report that came in weaker than expected last Friday, alleviating worries the Federal Reserve might maintain higher interest rates for an extended period.

On Bursa Malaysia, sectors that recorded the highest net inflows were utilities (RM443.7mil), financial services (RM277.3mil), and

telecommunication and media (RM140.4mil).

The sectors with the highest net foreign outflows were energy (RM22.4mil), plantation (RM16.9mil), and property (RM10.4mil).

Local institutions, meanwhile, turned net sellers with RM943.1mil net of local equities sold last week after nine straight weeks of net buying.

Local retailers maintained their net selling streak for an eigth consecutive week, with RM112.2mil net sold.

"In terms of participation, the average daily trading volume (ADTV) saw increases among all investor classes.

"Foreign investors led with an increase of 22% while local institutional investors and local retail investors saw surges of 16.7% and 6.7% respectively," said MIDF.