Bursa sees foreign inflow of RM274.4m last week

PETALING JAYA: Foreign inflow outstrip outflow on Bursa Malaysia for the first time since mid-February to a tune of RM274.4 million net last week as compared to -RM776.1 million, weekly average, since early this year.

This marks the first net inflow after 25th consecutive week of foreign net selling.

“So far in 2020, foreign investors have sold -RM19.7 billion net on Bursa. In comparison with the other six Asian markets that we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis,“ MIDF Research said in its fund flow report today.

As market reopened on Monday last week, foreign investors bought RM54.6 million net of local equities, marking the start of buying trend for the week.

Foreign net inflow increased to RM105.4 million and RM197.61 million on Thursday and Friday last week respectively with the largest net outflow of the week on Tuesday.

“Note that the foreign turns net buyer was probably buoyed by the positive sentiments on another potential US stimulus package, better-than-expected US jobless claims, beating consensus by 2.6%. This is on top of the positive newsflow in oil & gas sector as EIA reported two consecutive crude oil draw in at 7.4 million and 4.5 million barrels for the past two weeks,“ MIDF said.

On Tuesday, the only foreign net outflow for the week, at -RM103.3 million, coincided with the Malaysian economic data release, construction output and retail sales which recorded dismal figures of -44.9% and -9.2% against forecasts of -10% and 3.5%.

“In comparison to another three South East Asian markets that we tracked last week, Malaysia recorded the highest foreign net inflow while Thailand experienced the biggest outflow compare to the others.”

In terms of participation, the retail investors recorded a weekly decline -28.8% in average daily trade value (ADTV) to RM6.02 billion while the foreign investors experienced the least weekly decline of ADTV by -14.47% to reach RM1.43 billion.

source https://www.thesundaily.my/business/bursa-sees-foreign-inflow-of-rm2744m-last-week-BF3513425