Foreign Funds Drive Bursa Malaysia to Net Inflows Following Strong GDP Growth – MIDF Research

Foreign Funds Drive Bursa Malaysia to Net Inflows Following Strong GDP Growth – MIDF Research

KUALA LUMPUR: Foreign funds, which had recorded outflows until now, shifted to a net inflow of RM4.9 million as they continued purchasing equities on Bursa Malaysia for the fourth consecutive week, totaling RM873.9 million last week, according to MIDF Research.

The research firm attributed the sustained interest in the domestic market to confidence in the country’s economy following a 4.2 percent year-on-year increase in gross domestic product (GDP) for the first quarter of 2024 (Q1 2024).

“This exceeds the 3.9 percent growth forecast by a Reuters survey and the preliminary estimates released by the government,” MIDF Research stated in its latest weekly Fund Flow Report.

The report indicated that foreign funds were net buyers in Malaysia throughout the week, with the highest net inflow of RM299.98 million on Wednesday.

“This marks the beginning of strong net buying by foreign funds, with subsequent days seeing net inflows exceeding RM100 million each day. Thursday recorded RM269.2 million, while Friday saw purchases amounting to RM184.3 million,” the report said.

The highest foreign inflows were seen in the transportation and logistics sector at RM223.6 million, utilities at RM189.1 million, and healthcare at RM183.3 million.

The only sectors with net foreign outflows were plantations at -RM64.7 million and construction at -RM6.7 million.

Meanwhile, local institutions continued their net sales for the third consecutive week, totaling -RM379.7 million, while local retailers extended their net sales to the tenth week, amounting to -RM494.1 million.

In terms of market participation, the average daily trading volume increased for local retailers (+27.1 percent), local institutions (+18.0 percent), and foreign investors (+8.5 percent).

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