Foreign capital help the composite index challenge 1600?

Recently, there have been frequent good news in the Malaysian market, driving the net purchase of foreign capital in Malaysian stocks to 1.06 billion ringgit last week, the largest net purchase in a single week in the past two years; Malaysian stocks also reached a new high in two years, posing a challenge to 1600 points.

According to the capital flow report released today by MIDF Research, foreign capital has been net-buying Malaysian stocks for 4 trading days last week, with a total amount of 1 billion 60 million ringgit, which is 3.6 times higher than the previous week and also the highest net purchase record in the past two years.

This pushed the Malaysian stock market up by 0.92% last week to reach a high of 1589.59 points.

The last time there was a large-scale inflow of funds into the Malaysian stock market was in the week of March 18, 2022 (Friday), with a total inflow of 110.8 million ringgit.

Last week, the sectors where foreign funds bought the most were utilities (0.443 billion million ringgit), financial services (0.277 billion million ringgit), and communication and media (0.1404 billion ringgit).

At the same time, the sectors with the highest net selling amount for foreign funds were energy (22.4 million ringgit), plantation (-16.9 million ringgit), and industry (10.4 million ringgit).

In addition, local institutions turned into net sellers last week, with a total selling amount of 0.9043 billion ringgit, ending their position as buyers for 9 consecutive weeks.

Retail investors continued to be net sellers of Malaysian stocks for the 8th consecutive week, with a total of 0.1122 billion ringgit.

In terms of participation, the daily average trading value of all three parties increased, with the most significant increase seen in foreign funds at 22.0%, followed by local institutions and retail investors at 16.7% and 6.7% respectively.