KUALA LUMPUR: After five straight weeks of net selling, international funds had finally made their way into stocks listed on Bursa Malaysia, MIDF Research said.
Based on data from Bursa, MIDF Research said foreign funds had acquired RM86.3 million net of local equities, the second lowest weekly foreign net inflow recorded so far this year.
"The weekly foreign net buying last week has pared the month-to-date foreign net outflow in March to RM1.40 billion," the research firm said in a note.
"Malaysia’s year-to-date foreign net outflow of RM1.19 billion is no longer the highest among the four Asean markets we monitor as Thailand took the spot with a year-to-date foreign net outflow of above RM1.40 billion," it added.
Bursa started the week on a strong note as foreign investors bought RM81.5 million net, the largest in a day since February 2019, the research firm said.
MIDF Research said the influx of foreign funds on Monday lifted the FTSE Bursa Malaysia KLCI by 0.6 per cent to its highest close in 10 trading days at 1,691 points.
It said international funds continued entering the Malaysian market to a tune of RM20.6 million net on Tuesday coinciding with Brent crude oil price consistently remaining near the US$67 per barrel level following OPEC’s commitment to resume output cuts 2019.
However, global funds shifted to the sidelines on Wednesday ahead of the United States Federal Reserve meeting, resulting in a foreign net outflow of RM26.6 million, it added.
The firm said another concern which surrounded markets on Wednesday was the possible pushback of China against US’ demands even as President Trump cited that talks are going well.
"Notwithstanding this, Malaysia attracted about of foreign net inflows worth RM14.6 million on Thursday as the Federal Reserve implied that it would halt interest-rate increases this year and pivot away from policy tightening," it said.
The ringgit followed suit to appreciate by 0.12 to an eight-month high of RM4.061against the US dollar, the strongest since late July last year.
A measurable pace of foreign net selling was however seen on Friday worth RM3.9 million following Malaysia’s consumer price index which contracted by 0.4 per cent year-on-year for the second month in February 2019, continuing a deflationary trend, MIDF Research said.