Bursa Malaysia returned to foreign fund inflows last week, ending a 12-week straight selloff.
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.
It is understood that buying interest by foreign investors started to increase on Wednesday which saw a net inflow of RM84.2 million.
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.
Not only that, it was the biggest net inflow since Feb 28, 2022, before the interest rate hike by the US Federal Reserve (Fed).
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.
In addition, the manufacturing sector also saw an expansion in sales value to RM146.8 billion or 3.3% year-on-year in May.
The three sectors that recorded net foreign inflows were technology at RM115 million, transport and logistics at RM102 million and plantations at RM97 million.
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.
Global market sentiment was positive last week following a significant drop in US inflation which may signal the end of the cycle soon.
