Foreign investors extended their buying momentum on Bursa Malaysia for a second consecutive week, recording net inflows of RM612.3 million, nearly eight times higher than the previous week’s inflows, according to MBSB Research.
The sustained foreign buying underscores improving investor confidence in the Malaysian equity market, with overseas funds emerging as net buyers on four of the five trading days during the week.
The strongest inflows were recorded on Thursday at RM238.7 million, followed by Tuesday with RM174.1 million, Wednesday with RM140.8 million and Friday with RM92.1 million. Monday was the only trading session to register foreign net selling, with outflows of RM33.4 million.
The Financial Services sector attracted the largest share of foreign funds, recording net inflows of RM754.1 million. Utilities followed with RM194.9 million, while the Plantation sector drew RM66.9 million in net foreign purchases.
In contrast, foreign investors reduced exposure to several sectors, with Industrial Products and Services experiencing the largest net outflow of RM256 million. The Technology sector recorded net foreign selling of RM98.5 million, while Consumer Products and Services saw outflows of RM64.3 million.
Domestic institutional investors moved in the opposite direction, extending their selling streak to a second week with net outflows of RM305.9 million.
Retail investors also turned net sellers after recording net purchases in the previous week, registering net outflows of RM306.4 million.
Market activity strengthened across all investor groups during the week. Average daily trading volume (ADTV) rose 40.8% among foreign investors, while retail participation increased by 34.3% and local institutional trading volume climbed 25.8%.
The continued return of foreign funds comes amid improving sentiment towards Malaysia’s economic outlook, supported by stronger-than-expected second-quarter economic growth and renewed interest in large-cap sectors, particularly financial services and utilities. However, persistent profit-taking by domestic institutions and retail investors suggests local participants remain cautious despite the recent recovery in market sentiment.
