The Inflow Of Foreign Investors Into Malaysia Is On The Rise! What's up?

<p>&nbsp;Bursa Malaysia returned to foreign fund inflows last week, ending a 12-week straight selloff.</p><p><br /></p><p>MIDF Research reported in its weekly fund flow report that net inflows increased by RM570.9 million last week from net outflows of RM254.1 million the previous week.</p><p><br /></p><p>It is understood that buying interest by foreign investors started to increase on Wednesday which saw a net inflow of RM84.2 million.</p><p><br /></p><p>It was then seen continuing on the following second day, where the highest amount was recorded on Friday with a net inflow of RM468.9 million.</p><p><br /></p><p>Not only that, it was the biggest net inflow since Feb 28, 2022, before the interest rate hike by the US Federal Reserve (Fed).</p><p><br /></p><p><br /></p><p>Among the factors supporting this increase is the 6.6% year-on-year growth in monthly sales value as well as the wholesale and retail trade sector reaching RM138 billion in May.</p><p><br /></p><p>In addition, the manufacturing sector also saw an expansion in sales value to RM146.8 billion or 3.3% year-on-year in May.</p><p><br /></p><p>The three sectors that recorded net foreign inflows were technology at RM115 million, transport and logistics at RM102 million and plantations at RM97 million.</p><p><br /></p><p>While the three sectors that saw net foreign outflows were healthcare of RM29.7 million, REITs of RM10.2 million and Energy of RM7.1 million.</p><p><br /></p><p>Global market sentiment was positive last week following a significant drop in US inflation which may signal the end of the cycle soon.</p>