Foreign investors returned to Malaysian equities in July, with buying concentrated in Financial Services, Transportation and Logistics, and
Utilities, according to MBSB Research’s latest Weekly Fund Flow Report.
Foreign institutions recorded RM300.9 million in net inflows on Bursa Malaysia during the month, ending two consecutive months of net selling. Financial Services attracted the largest inflow at RM1.11 billion, followed by Transportation and Logistics at RM367.2
million and Utilities at RM305.6 million.
The recovery was not broad based. Industrial Products and Services recorded RM759.7 million in net foreign outflows, while Technology saw outflows of RM484.9 million. Consumer Products and Services also registered RM212.8 million in net selling. The pattern continued during the final week of July. Foreign institutions recorded RM11.1 million in net buying, with Transportation and Logistics receiving RM107.4 million in inflows. Financial Services and Healthcare led the weekly sector inflows at RM216.5 million and RM148 million respectively.
Imran Yassin Yusof, Head of Research at MBSB Research, said the distribution of the inflows offered a more useful indication of investor sentiment than the overall figure alone. “The return of foreign buying is a constructive signal, but the composition of the flows is more telling than the headline figure. Inflows were concentrated in Financial Services, Transportation and Logistics, and Utilities, while Technology and Industrial Products and Services continued to see selling.
