THE week ended May 3 saw stronger net buying by foreign investors on Bursa Malayasia with net inflow surging 3.6 times from the week prior to RM1.06 bil (from RM292.2 mil) amid hectic net buying during the shortened trading days in view of Labour Day (May 1).

This was the strongest weekly net buying amount in two years with the last time the local bourse posted such heavy inflows being the week ended March 18, 2022 at RM1.18 bil.

“Foreign investors net bought RM451.8 mil on Monday (April 29), RM184.3 mil on Tuesday (April 30), RM43.0 mil on Thursday (May 2) and RM376.1 mil on Friday (May 3),” observed MIDF Research in its weekly fund flow report.

“The sectors that recorded the highest net foreign inflows were utilities (RM443.7 mil), financial services (RM277.3 mil) and telecommunication & media (RM140.4 mil) while the sectors with the highest net foreign outflows were energy (-RM22.4 mil), plantation (-RM16.9 mil) and property (-RM10.4 mil).”

Meanwhile, local institutions took a breather from their strong support for the local market as they net sold -RM943.1 mil last week after a net buying spree spanning nine straight weeks. They were net sellers during every trading session of last week.

In the same manner, local retailers sustained their net selling streak for the eighth consecutive week at -RM112.2 mil.

In terms of participation, the average daily trading volume (ADTV) saw increases among all investor classes. Foreign investors led with an increase of +22.0% while local institutional investors and local retail investors saw surges of +16.7% and +6.7% respectively.

In comparison with another four Southeast Asian markets tracked by MIDF Research, all markets posted net outflows led by the Philippines with a net selling of -US$290.9 mil - its sixth week of net selling - and the highest ever in a year.

Elsewhere, foreign investors continued to dispose of Indonesian equities for the fifth consecutive week at -US$194.5 mil while foreign investors returned to net selling mode in Thailand at -US$59.2 mil last week after briefly net bought the week prior. Likewise, net selling in Vietnam stretches into its ninth consecutive week at -US$12.4 mil.

The top three stocks with the highest net money inflow from foreign investors last week were Tenaga Nasional Bhd (RM202.1 mil), CIMB Group Holdings Bhd (RM157.5 mil) and Malayan Banking Bhd (Maybank) (RM118.4.1 mil). - May 6, 2024

https://focusmalaysia.my/foreign-funds-making-beeline-into-bursa-as-net-inflow-surges-past-rm1-05b-the-highest-level-in-2-years/