FOREIGN investors concluded their eighth consecutive week of net selling on Bursa Malaysia as they shifted to become net buyers with an inflow amounting to RM292.2 mil last week (trading week ended April 26).

This comes on the back of the World Bank having maintained its CY2024 economic growth forecast for Malaysia at +4.3% although it acknowledges the potential for an upside from increased oil prices resulting from the on-going conflict in the Middle East, according to MIDF Research.

“The projected GDP (gross domestic product) growth in CY2024 is expected to be primarily propelled by private consumption,” the research house pointed out in its weekly fund flow report.

On Friday (April 26), the FBM KLCI staged a rebound by climbing to a fresh two-year high of 1,575.16 - up .91 points or 0.38% - in tandem with the positive performance of regional bourses.

MIDF Research observed that the three sectors with the highest net inflows were utilities (RM285.8 mil), financial services (RM105.3 mil) and telecommunications & media (RM100.3 mil).

On the contrary, sectors that saw the strongest net selling were consumer products & services (-RM223.2 mil), plantation (-RM68.5 mil) and energy (-RM31.6 mil).

Likewise, local institutions continued their trend of net buying for the ninth consecutive week with a net purchase totalling RM143.3 mil.

However, local retailers sustained their net selling streak for the seventh consecutive week with -RM435.5 mil.

In terms of participation, the average daily trading volume (ADTV) declined for retail and foreign investors by -10.9% and -15.5% respectively. However, local institutions saw a slight uptick of +0.2%.

In comparison with another four Southeast Asian markets tracked by MIDF Research, Thailand was the only other country to experience a net foreign inflow of US$84.5 mil which marks a turnaround from the previous week’s net outflow of -US$285.5 mil.

Elsewhere, foreign investors persisted in net selling Indonesia equities for the fifth consecutive week at -US$277.4 mil while the Philippines recorded its fifth consecutive week of net foreign outflow amounting to -US$48.6 mil. Meanwhile, Vietnam marked its eighth consecutive week of net foreign outflow at -US$44.4 mil.

The top three stocks with the highest net money inflow from foreign investors last week were Malayan Banking Bhd (Maybank) (RM166.1 mil), YTL Corp Bhd (RM117.7 mil) and Tenaga Nasional Bhd (RM99.2 mil). - April 29, 2024

https://focusmalaysia.my/foreign-funds-turned-buyers-after-8-straight-weeks-of-selling-with-net-inflow-of-rm290m-last-week/