Foreign investors return as net buyers on Bursa Malaysia, with RM1.3 billion in inflows
Foreign fund flows into the Malaysian equity market turned positive again in the week ended 30 Oct, after overseas institutions recorded net buying on most trading days. The move was supported by strong interest in financial services, transportation and logistics, and construction stocks.
Highlights
- Foreign institutions were net buyers of RM1.3 billion on Bursa Malaysia in the week ended 30 Oct, with the largest daily inflow of RM117.4 million recorded on Wednesday.
- Financial services attracted the highest foreign inflows at RM437.1 million, followed by transportation and logistics at RM169.5 million and construction at RM73.4 million; plantations saw outflows of RM163.2 million.
- Local retail investors were net buyers for 10 consecutive weeks, with inflows of RM134.6 million, while local institutions were net sellers of RM457.7 million.
This article was translated from the original. Read the original version by our correspondent here.
Fund flow details for the week ended 30 Oct
According to The Edge Malaysia, citing MBSB Investment Bank Bhd's weekly fund flow report, foreign institutions were net buyers on four of the five trading days last week, with total net inflows reaching US$323.1 million, equivalent to RM1.3 billion.The largest daily inflow was recorded on Wednesday at RM117.4 million, followed by RM117.2 million on Tuesday, RM68.6 million on Friday, and RM32.3 million on Thursday. The only net outflow occurred on Monday, at RM17.3 million.
The sector that attracted the highest foreign inflows was financial services, at RM437.1 million, followed by transportation and logistics at RM169.5 million and construction at RM73.4 million. In contrast, the three sectors with the largest foreign outflows were plantations, at RM163.2 million, technology at RM110.9 million, and industrial products and services at RM102.4 million.
Impact on local market participants
Among local investors, retail investors extended their net buying streak to 10 consecutive weeks, with net inflows of RM134.6 million.At the same time, local institutions returned as net sellers after recording inflows the previous week, with net outflows of RM457.7 million. Average daily trading volume showed mixed changes, with retail investor volume rising 3.7% and foreign institutional volume increasing 8.9%, while local institutional volume fell 6.4%.
In our previous report on the appeal of Malaysia's equity market, we discussed how Malaysia remains competitive amid global uncertainty, supported by the stability of local stocks and sustained foreign inflows. The article also highlighted expectations that the technology and financial sectors would be key drivers of foreign fund inflows, fuelled by investment in digital infrastructure and innovation.