KUALA LUMPUR: Year-to-date outflows reversed to a net inflow of RM4.9 million as foreign funds extended their equities buying on Bursa Malaysia for the fourth consecutive week, totalling RM873.9 million last week, according to MIDF Research.
The research firm attributed the sustained interest in the domestic market to economic optimism following a 4.2 per cent year-on-year rise in gross domestic product (GDP) for the first quarter of 2024 (1Q 24).
“This exceeded both the 3.9 per cent growth forecast by a Reuters poll and the advance estimates released by the government,” it said via its latest weekly Fund Flow Report.
The report highlighted that foreign funds were net buyers in Malaysia throughout the week, with the highest net inflow of RM299.98 million occurring on Wednesday.
“This marked the beginning of strong net buying by foreign funds, with subsequent days seeing net inflows exceeding RM100 million each day. Thursday recorded RM269.2 million, while Friday saw RM184.3 million,” the report noted.
The sectors with the highest net foreign inflows were transportation and logistics at RM223.6 million, utilities at RM189.1 million, and healthcare at RM183.3 million.
The only sectors with net foreign outflows were plantation at -RM64.7 million and construction at -RM6.7 million.
Meanwhile, local institutions continued their net selling streak for the third consecutive week, totalling -RM379.7 million, while local retailers’ net selling extended into the tenth week, amounting to -RM494.1 million.
In terms of participation, the average daily trading volume increased for local retailers (+27.1 per cent), local institutions (+18.0 per cent) and foreign investors (+8.5 per cent). – BERNAMA
