Net foreign capital inflow into Bursa Malaysia accelerates to RM1.4 billion

KUALA LUMPUR: Foreign investors bought a net RM1.4 billion of domestic equities last week, five times the RM299.6 million net inflow in the previous week.

In a statement, MIDF Research said Malaysia’s latest trade report showed exports grew at the fastest pace in almost two years, driven by strong demand for basic goods and electronics.

Exports rose to RM131.2 billion in July 2024, a 12.3% year-on-year increase.

Foreign investors flocked to local stock markets amid a positive sentiment toward the U.S. Federal Reserve beginning to cut interest rates. Minutes from the July meeting showed a “vast majority” of participants favored a rate cut.

“Foreign investors were net buyers on every trading day except Friday when there was a sell-off of RM1.6 million. The largest net inflow of foreign capital occurred on Monday, totalling RM574.9 million,” MIDF said.

The sectors with the largest net inflow of foreign capital were financial services (RM1.3 billion), utilities (RM118.9 million) and telecommunications and media (RM54.8 million). The sectors that recorded the largest net outflow of foreign capital were technology (RM140.2 million), consumer products and services (RM50.2 million) and real estate (RM25.9 million).

Meanwhile, local institutions were net sellers on all days of the week, with net selling of Malaysian shares standing at RM1.12 billion for the second consecutive week.

Local retailers net sold local equities worth 284.4 million Malaysian ringgit.

“The average daily trading volume (ADTV) showed increases across all investor classes. Foreign investors recorded the highest increase of 35.8%, while local institutions and local retailers recorded increases of 33.1% and 19%, respectively,” MIDF said.