KUALA LUMPUR (Sept 9): For the fourth consecutive week, foreign investors have purchased equities in Malaysia, with net purchases recorded every day last week, according to MIDF Research.
Total net purchases by foreign investors amounted to RM798.3 million. The largest inflow occurred last Wednesday, totalling RM286.0 million, coinciding with Bank Negara Malaysia's decision to maintain the overnight policy rate at 3% as widely expected.
The decision, following a two-day meeting of the Monetary Policy Committee, was based on ongoing economic growth and stable inflation. This announcement likely influenced the significant inflow of foreign investment last Wednesday.
Among the sectors, financial services saw the highest net foreign inflows, amounting to RM743.2 million last week. Utilities followed with RM405.1 million, while healthcare recorded RM113.6 million in net foreign inflows.
Conversely, the sectors with the highest net foreign outflows were consumer products and services at RM193.8 million, industrial products and services at RM116.0 million, and technology at RM68.4 million.
Local institutions, on the other hand, net sold equities for the fourth week in a row, totaling RM960.5 million. In contrast, local retailers were net buyers, with total net purchases of RM162.2 million.
The average daily trading volume experienced declines across the board. Local retailers saw a decrease of 14.6%, local institutions 18.3%, and foreign investors 35.8%.
Despite these declines, the sustained interest from foreign investors highlighted confidence in Malaysia's economic stability and growth prospects, said MIDF Research.