Foreign investors turned net buyers on Bursa Malaysia last week, ending an eight-week streak of net selling by recording RM75.3 million in net inflows, according to MBSB Research.
The return of foreign funds signals improving investor sentiment towards Malaysian equities, although trading activity among overseas investors remained relatively subdued during the week.
Foreign institutions were net buyers on three of the five trading days, with the strongest inflows recorded on Thursday (RM142.5 million), followed by Wednesday (RM23.1 million) and Friday (RM3.7 million).
The only net selling sessions occurred on Monday, which saw outflows of RM84.5 million, and Tuesday, when foreign investors sold RM9.5 million worth of local equities.
Utilities emerged as the biggest beneficiary of foreign buying, attracting RM136.5 million in net inflows during the week.
The Financial Services sector followed with RM84.2 million in net purchases, while Plantation stocks recorded net foreign inflows of RM50.9 million, reflecting continued investor interest in defensive and dividend-paying sectors.
In contrast, foreign investors continued to reduce exposure to technology-related counters, with the Technology sector registering the largest net outflow of RM106.2 million.
The Industrial Products & Services sector also recorded net foreign selling of RM88.8 million, while the Construction sector saw outflows amounting to RM20.9 million.
The improvement in foreign participation coincided with local institutional investors becoming net sellers after supporting the market for three months.
Local institutions recorded RM201.3 million in net outflows, ending a 12-week consecutive buying streak.
Meanwhile, retail investors returned to accumulate local equities after the previous week’s selling, recording RM126.0 million in net inflows.
Trading activity showed differing trends across investor groups during the week.
The average daily trading volume (ADTV) for local institutional investors increased 10.9%, indicating stronger participation from domestic funds despite their net selling position.
Retail participation eased slightly, with ADTV declining 6.5%, while foreign investors’ trading activity fell more sharply by 27.6%, suggesting that although overseas funds returned as net buyers, overall participation remained measured.
MBSB Research said the latest flow data reflects a modest improvement in foreign investor sentiment towards Malaysian equities, even as sector rotation continues to favour defensive segments such as utilities, financial services and plantations amid ongoing global market uncertainties.
