Foreign funds turn net buyers of RM404.1mil of Malaysian equities

Foreign funds returned to Bursa Malaysia over the past week to the tune of RM404.1mil net, after three consecutive weeks of outflow.

According to MIDF Research, the net inflow was significant with foreign investors registered as net buyers on every trading day of the week except for Monday. On Thursday alone, the net inflow was RM226.3mil.

The return of offshore funds to Malaysian equities was at odds with the regional performance. MIDF reported that foreign investor activity in Asia was negative for the week ending Oct 18, 2024, with a total net outflow of US$1.9bil over the eight markets it tracks.

However, it said there was an improvement to the week's outflows, which suggested potential stabilisation of sentiment as the markets absorbed the various global economic developments.

In Malaysia, the sectors that recorded the most net inflows were financial services (RM181mil), property (RM68.6mil) and industrial products and services (RM63.8mil).

The sectors that registered the highest net foreign outflows were consumer products and services (RM65.4mil), technology (RM13.9mil) and energy (RM10mil).

Local institutions were net sellers of RM384.2mil of local equities, while local retail investors took profit for a net sales figure of RM20mil.

The average daily trading volume (ADTV) showed declines across all investor classes except for foreign investors, who gained 5.3%.

Local retailers experienced the highest decline at 10.7%, while local institutions recorded a decrease of 4.2%, said MIDF.

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