KUALA LUMPUR – Foreign investors acquired RM190.1 million net of local equities in the holiday-shortened week compared to the RM32.5 million net inflow in the preceding week, said Bank Islam Malaysia Bhd economist Adam Mohamed Rahim.
He told Bernama that foreign investors began last week by disposing of RM43.6 million net of local equities on Monday as they digested the pros and cons of allowing certain economic sectors to operate under stepped-up movement curbs, and the cost of the country’s Covid-19 pandemic handling.
“Foreign investors subsequently made a comeback to Bursa Malaysia by acquiring RM20.4 million net of local equities on Tuesday.
“Brent crude oil price stood firm on Tuesday, hovering at US$68 (RM281) per barrel, and this sparked some interest in oil and gas counters, particularly Petronas-related counters, on the FTSE Bursa Malaysia KLCI, which ended higher on Tuesday.”
He said offshore funds continued to enter the local market at a stronger pace, amassing RM100 million net as the market reopened on Thursday following a one-day break in conjunction with Wesak.
“Investors started to focus on the recovery theme as many companies had already released their financial results for the quarter ended March 31, 2021, enabling them to make a more informed decision.”
Adam said Friday marked the third consecutive day of foreign net buying, with international investors acquiring RM113.3 million net of local equities.
“The positive sentiment may have been boosted by the government’s plan to increase vaccination rates in the coming months as more vaccines are procured.”
He added that May is set to be another month of foreign net outflows, as the month-to-date foreign net selling as of May 28 stood at RM221.9 million, with only one more trading day left today.
As for year-to-date, international investors have taken out RM3.1 billion net of local equities.
“We can expect to see knee-jerk reaction at the start of the week amid the imposition of a full-scale lockdown from June 1 to 14,” said Adam.
“Recall that when the first movement control order was imposed in March last year, foreign investors took out RM1.8 billion net of local equities in the week from March 16 to 20 alone.” – Bernama, May 31, 2021
