International Finance

Overseas investors purchase RM321 million in Malaysian equities

MIDF Research said that offshore net buying activity rose to RM257.2 million on Friday, the biggest in a day since late May 2019

According to MIDF Research, Bursa Malaysia witnessed a tremendous surge over the last week as overseas investors flocked in to buy RM320.9 million net of Malaysian equities.

In the previous week, about RM10.9 million of Malaysian equities were sold by overseas investors while last week’s transaction was the biggest weekly foreign net influx in 32 weeks.

Although the atmosphere was glum last Monday as overseas investors sold off RM27.3 million net of domestic equities, the tide turned favourably on Wednesday as offshore funds worth RM41.4 million net poured into the Malaysian stock exchange, amid the backdrop of the US-China trade deal.

The development occurred in spite of the fact that there won’t be any reversals on the prevailing rates imposed on China. The MIDF added that overseas net purchase increased to touch RM57.7 million net following the signing of the trade deal between the US and China.

According to the trade agreement, the US wants China to come down heavily on Chinese organisations that have stealthily infringed on American technology and business confidential data. China, on its part, seeks to splurge $200 billion to offset its trade discrepancies with the United States.

MIDF further said that offshore net purchase activity rose to RM257.2 million on Friday, the biggest in a day since late May 2019. It went on to say that China’s GDP growth allayed the fears which investors had over Malaysia’s monetary stability.

Indicating that January 2020 has witnessed an overseas net influx of RM491.1 million on a month-to-date basis, MIDF concluded by saying that Malaysia has the second least overseas net influx as compared with the other three Asean markets after Indonesia while Thailand and Philippines have witnessed overseas net outflow.

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