Foreign investors keep buying Malaysian stocks for third consecutive week

Foreign investors continued their buying momentum in the Bursa Malaysia for the third consecutive week last week.

According to MIDF Research, foreign funds mopped up RM337.7 million net of Malaysian equities last week, higher than the RM272.3 million net seen in the preceding week.

It was also the first time in 12 weeks that foreign buying was recorded above the RM300 million mark.

Foreign fund flows into Southeast Asia, according to MIDF Research.

The week also saw foreign investors being net buyers every single day, extending net daily buying to nine-straight days as at last Friday – the longest in nearly seven months.

MIDF said, foreign investors began the week strong by mopping up RM89.5 million, as risk-on mood improved following the passage of a Senate tax bill in the preceding weekend.

However, it said foreign buying was affected on Tuesday, going down to RM20.8 million net despite the FBM KLCI reaching a two-week high of 1,724 points amid the improvement in 3Q17 corporate earnings.

"It is noteworthy that foreign funds gradually increased their exposure in Malaysian stocks thereafter. Most importantly, foreign buying peaked on Friday at RM159.5 million net, the largest acquisition in a day since Nove 23," MIDF said.

It said, this was spurred by positive Chinese trade data and the rally of Malaysian banking stocks.

MIDF added that year-to-date foreign buying now stood at RM9.71 billion.

In the past 49 weeks, Malaysia has experienced 33 weeks of foreign inflows compared to 26 weeks in 2016.