What drove the significant surge in foreign buying of Malaysian equities last week?

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Foreign Investment in Malaysian Equities Surged Significantly Last Week

Foreign buying of Malaysian equities experienced a substantial surge last week, reaching RM1.06 billion. This represented a 3.6-fold increase from the RM292.2 million recorded the previous week and marked the strongest weekly net buying figure observed in two years. Purchases by foreign investors were recorded on each trading day of the week, indicating consistent inflows.
Key Sectors Attracted Foreign Capital

The utilities sector saw the largest net foreign inflow, attracting RM443.7 million, followed by financial services with RM277.3 million. The telecommunications and media sector also experienced significant inflows, totalling RM140.4 million. Conversely, the energy sector recorded the highest net foreign outflow, amounting to RM22.4 million, with plantation and property sectors also experiencing net outflows.
Broader Asian Context and Global Market Influence

The surge in Malaysian equities occurred within a broader trend of foreign funds returning to Asia, which saw net buying of US$1.09 billion last week after a period of net selling. This regional rebound was notably driven by robust net buying in Taiwan, influenced by positive movements in technology stocks on Wall Street. South Korea and Malaysia were among the other Asian markets that attracted foreign net buying.
Local Investor Activity Shifted

In contrast to the foreign inflows, local institutional investors shifted from net buying to net selling, offloading RM943.1 million worth of equities last week. This marked a pause after nine consecutive weeks of net buying activity. Local retailers also continued their trend of net selling for the eighth consecutive week, with total net sales amounting to RM112.2 million.

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What drove the significant surge in foreign buying of Malaysian equities last week?

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