KUALA LUMPUR – Foreign investors tuned into net buyers last week, acquiring RM14 million net of local equities, compared with RM451.1 million net disposed of in the preceding week.
Bank Islam Malaysia economist Adam Mohamed Rahim said this marks the first weekly foreign net inflow on Bursa Malaysia after seven consecutive weeks of foreign net selling.
He said the week started off with a moderate foreign net outflow of RM22 million net today.
Generally, the local market was rather upbeat on the latest announcement on the movement restrictions relaxation for fully vaccinated individuals.
Additionally, the Covid-19 daily tally on that day had fallen to 17,236 cases from 18,688 cases the previous day.
“This had somewhat helped to offset concerns on the acceleration of the Delta variant infection rate in many countries,” he said.
When the markets resumed on Wednesday after the Awal Muharram public holiday, international investors acquired RM30.6 million net of local equities, snapping the 12-day foreign net selling streak.
“Optimism was partly supported by the United States (US) lawmakers’ move to agree on a US$1 trillion infrastructure bill to boost the country’s economy.
“This helped to offset worries on the onslaught of the Delta variant in many Asian countries, which raised fears about local restrictions on travel and other activities hurting the economic recovery,” said Adam.
However, the foreign net inflow to Bursa was short-lived as foreign investors sold RM25.6 million net of local equities on Thursday after Malaysia saw yet another record high Covid-19 daily tally at 21,668 cases.
“Nevertheless, foreign investors were back in buying mode on Friday as they snapped up RM31.3 million net of local equities, after Malaysia’s Gross Domestic Product (GDP) data for the second quarter of 2021 showed a 16.1% year-on-year growth.
“So far, international investors have sold RM437.1 million net of local equities this month. Meanwhile, on a year-to-date basis, the foreign net selling on Bursa has reached RM6 billion net,” Adam noted. – Bernama, August 16, 2021
