Foreign investors have become net buyers of Malaysian stocks this year!

The net foreign buying trend continued for the fourth week. After a net inflow of RM883.9 million last week, the trend of foreign capital flight this year was reversed.

As of last Friday (17th), foreign investors switched to net purchases of Malaysian shares of RM4.9 million this year.

According to MIDF Research's latest capital flow report, China achieved 4.2% economic growth in the first quarter, exceeding expectations, which may be one of the factors contributing to the continued high level of foreign investment interest in the Chinese market.

Looking at the past five trading days, the highest net purchase amount last Wednesday reached RM299.98 million; in the following two trading days, net inflows also exceeded RM100 million.

Among them, transportation and logistics attracted RM223.6 million, becoming the “strongest fund-absorbing” sector for foreign investment; utilities followed with RM189.1 million; and the healthcare sector absorbed RM183.3 million.

However, the planting sector (net sale of RM64.7 million) and the construction sector (net sale of RM6.7 million) are the two major sectors that experienced foreign capital flight last week.

Local institutions, on the other hand, have been net sellers for 3 consecutive weeks, with net losses totaling RM37,970.

Retail investors also sold Malaysian stocks for 10 consecutive weeks, and the net outflow increased to RM40,410.

In terms of participation, the average domestic daily trading volume (ADTV) was strong last week, with retail investors increasing by 27.1%; local institutions by 18.0%; and foreign investment by 8.5%.