Address

Precise Investors

Trading

Foreign investors remained net buyers on Bursa Malaysia

Bursa Malaysia

Fund inflows on the exchange rose to $231.28 million compared to $1.58 million in the previous week

Foreign investors remained net buyers of local equities on Bursa Malaysia last week, with fund inflows rising to RM964.2 million ($231.28 million) compared to RM6.6 million ($1.58 million) in the previous week.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investors began the week as net buyers after acquiring RM6.7 million ($1.61 million) net of local equities today amid increased risk-on mode among investors, propelled by stronger Brent crude oil prices.

On further scrutiny, perhaps Malaysia’s new prime minister which was sworn in during the Saturday of the previous week might have instilled investors’ confidence towards the country’s leadership, he told Bernama.

Adam said Tuesday recorded a foreign net inflow of RM153.6 million ($36.84 million) net as the local bourse was in a recovery mode following the selldown of the past two months.

The appointment of the new prime minister has contributed to more stable political development in the local market, attracting foreign investors to make a comeback, he said.

Foreign net buying reached a higher level of RM236.5 million ($56.73 million) net on Wednesday as investors took a cue from positive US vaccination news whereby the US Food and Drug Administration on Monday issued full approval for the Pfizer/BioNTech two-dose vaccine, he added.

Meanwhile, there have been encouraging signs from other countries such as China in terms of handling the pandemic as no locally transmitted infections were recorded in the latest data.

Foreign investors continued to pile into local equities on Thursday, buying RM310.7 million ($74.53 million) net on that day. Likewise, the FTSE Bursa Malaysia KLCI (FBM KLCI) index closed 1.0 per cent higher at 1585.7 points on Thursday, which outperformed most Asian peers such as Hong Kong, China, South Korea, and Indonesia which recorded losses, he said.

Adam noted that the anticipated announcement of the cabinet ministers line-up continued to drive confidence among investors towards Malaysia’s leadership.

At the same time, expectations of the US Federal Reserve to drop hints on scaling back asset purchases during the Jackson Hole symposium on Friday waned as tapering views may be evolving due to the Delta variant. There seem to be no signs of slowdown as international investors flocked into local equities to the tune of RM256.7 million ($61.57 million) net, he said.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

sixteen − seven =