Foreign investors roar back to Bursa with RM332mil inflows

Foreign investors roar back to Bursa with RM332mil inflows

Stable inflation and steady labour market conditions suggest the domestic economy remains resilient, says MIDF.

kl skyline
The three sectors recording the highest net foreign inflows were financial services, telecommunications and media, and industrial products and services. (AP pic)
KUALA LUMPUR:
Foreign investors registered a net inflow on Bursa Malaysia, reversing a 26-week selling streak and recording RM332.3 million in net inflows, marking the first week of net foreign inflows since Oct 24.

According to MIDF Amanah Investment Bank Bhd’s fund flow report for the week ended April 25, foreign investors were net buyers on every trading day, except Monday and Tuesday, which saw outflows of RM101.1 million and RM105.4 million, respectively.

On the remaining days, inflows ranged from RM125.9 million to RM267.2 million.

The three sectors recording the highest net foreign inflows were financial services (RM197.1 million), telecommunications and media (RM60.8 million), and industrial products and services (RM48.8 million).

Conversely, the sectors with the largest net foreign outflows were energy (RM16 million), plantation (RM16 million), and healthcare (RM13.3 million).

MIDF also noted a reversal of fortunes for local institutions, which turned net sellers for the first time since Oct 24, with outflows of RM267.4 million after 26 consecutive weeks of net buying.

Local retail investors extended their net selling trend to a second week, with an outflow of RM64.9 million, 2.5 times more than the previous week’s outflow.

The average daily trading volume (ADTV) saw broad-based growth, except for foreign investors, who experienced a 6.9% decline.

Local institutions and retail investors recorded increases of 23.8% and 2.2%, respectively.

MIDF also reported that Malaysia’s headline inflation eased to 1.4% year-on-year in March 2025, providing some relief for policymakers.

The slowdown was broad-based, with price growth moderating in accommodation, food services, utilities, and household goods.

“Stable inflation, coupled with steady labour market conditions – unemployment holding at 3.1% -suggests the domestic economy remains resilient, though external headwinds are building,” MIDF said.

In the wider Asian market, only Malaysia, India, Taiwan, and Vietnam saw net foreign inflows, while other countries experienced net outflows, with Thailand facing the most significant selling pressure.

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