By Zairina Zainudin
KUALA LUMPUR, Aug 23 (NNN-Bernama) — Foreign investors remained as net buyers of local equities on Bursa Malaysia last week, although the inflow had declined to RM6.6 million from RM14.0 million net bought in the preceding week.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investors started the week as net buyers, acquiring RM20.8 million net of local equities on Monday and a further RM96.6 million net on Tuesday — the highest daily foreign fund inflow since June 18 this year.
“It seems that the latest relaxation of movement restrictions for fully vaccinated individuals has revived the thematic play related to economic recovery, seen in the rise of the share price of counters such as Press Metal Aluminium Bhd, together with banking and plantation stocks,” he said to Bernama.
Adam said the foreign net buying continued for the fourth consecutive day on Wednesday as offshore investors bought RM31.8 million net of local equities.
He noted that the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index rose 0.1 per cent to 1,525.2 points on Wednesday in line with the uptrend in most of its Asian peers, as investors were trying to weigh between the reopening of economies and the threat from the highly transmissible COVID-19 Delta variant.
However, the buying streak ended on Thursday as international investors sold RM119.5 million net of local equities.
This coincided with the FBM KLCI index ending the day 0.7 per cent lower at 1,515.0 points, echoing the losses seen in other Asian peers such as Hong Kong, South Korea and Japan, he said.
“Asian markets were jittery as the United States Federal Reserve’s July meeting minutes indicated that the removal of stimulus could take place this year.
“This led some investors to exit the equity market and head for safe haven assets,” he said.
Adam said the net selling continued on Friday, although at a slower pace of RM23.1 million net, and noted that investors were feeling a little calmer ahead of the appointment of Malaysia’s new prime minister later that day.
The Istana Negara (National Palace) had issued a statement on the appointment of Ismail Sabri Yaakob as Malaysia’s ninth prime minister a few minutes before the markets closed for the day.
So far, international investors have sold RM430.5 million net of local equities this month.
On a year-to-date basis, the foreign net selling on Bursa stood at RM6.0 billion net.
— NNN-BERNAMA