Is the comprehensive foreign funding index challenging 1600?

Recently, good news has been spreading frequently in the Malaysian market, driving net purchases of Malaysian stocks to RM1.06 billion last week, the biggest weekly net purchase amount in the past two years; Malaysian stocks also reached a 2-year high, challenging 1,600 points.

According to the capital flow report released by MIDF Research today, foreign investors were net buying Malaysian stocks for 4 trading days last week, totaling RM1.06 billion, which is 3.6 times higher than the previous week. It is also the highest weekly net purchase record in the past two years.

This drove Malaysian stocks up 0.92% last week to a high of 1589.59 points.

The most recent large-scale capital inflow to Malaysian stocks was in the week of March 18, 2022 (Friday). The total weekly capital inflow was RM1.18 billion.

Last week, the most foreign purchases were utilities (RM443.7 million), financial services (RM277.3 million), and communications and media (RM140.4 million).

Meanwhile, the sectors with the highest net foreign sales were energy (RM22.4 million), farming (-RM16.9 million), and industry (RM10.4 million).

Furthermore, the local agency became a net seller last week, with total sales of RM903.1 million, ending its position as a buyer for 9 consecutive weeks.

Retail investors, on the other hand, sold Malaysian stocks net for the 8th week in a row, totaling RM112.2 million.

In terms of participation, the average daily transaction value of all three parties increased. Among them, foreign investment increased the most significantly, reaching 22.0%, while local institutions and retail investors increased 16.7% and 6.7% respectively.