Precise Investors


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.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Precise Investors. The information provided on Precise Investors is intended for informational purposes only. Precise Investors is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply