Foreign investors turned net buyers on Bursa Malaysia last week, ending the previous week’s selling streak with net inflows of RM11.1 million, signalling a cautious return of overseas funds to the local equity market.
According to the latest weekly fund flow report, foreign institutions were net buyers on three of the five trading days, led by Friday’s RM131.5 million inflow, followed by RM76.2 million on Thursday and a marginal RM0.2 million on Monday.
However, sentiment remained volatile during the week as foreign investors were net sellers on Tuesday and Wednesday, with Tuesday recording the largest daily outflow of RM167.8 million, followed by RM29.0 million on Wednesday.
The financial services sector attracted the strongest foreign interest, recording RM216.5 million in net inflows. Healthcare followed with RM148.0 million, while the transportation and logistics sector drew RM107.4 million.
In contrast, industrial products and services saw the largest foreign outflow at RM191.7 million, followed by the technology sector at RM164.0 million and plantation stocks at RM32.8 million.
Domestic institutional investors also returned to the market, registering RM48.1 million in net purchases after three consecutive weeks of net selling.
Meanwhile, retail investors emerged as net sellers, reversing the previous week’s buying trend with net outflows of RM59.1 million.
Trading activity improved across most investor groups during the week. Average daily trading volume (ADTV) by foreign investors rose sharply by 29.9%, reflecting renewed participation from overseas funds. ADTV for local institutions also increased by 3.6%, while retail participation eased by 5.6%.
The return of foreign buying, alongside renewed support from local institutional investors, suggests improving sentiment toward Malaysian equities, although sectoral rotations indicate investors remain selective amid ongoing global macroeconomic and geopolitical uncertainties.
