Ad Banner
Advertisement by Open Privilege

Foreign investors infuse RM535 million into Bursa Malaysia, signaling market confidence

Image Credits: UnsplashImage Credits: Unsplash
  • Foreign investors have injected RM535 million into Bursa Malaysia, signaling renewed confidence in the Malaysian economy.
  • Key sectors benefiting from this influx include transportation and logistics, utilities, and healthcare.
  • Malaysia's strong economic performance and increased trading volume across all investor categories contribute to the positive market sentiment.

Foreign investors have made a notable return to Bursa Malaysia, contributing a net inflow of RM535 million. This development is a strong indicator of renewed confidence in the Malaysian economy and its financial markets. The recent influx of foreign funds is a positive sign, especially after a period of net outflows that had raised concerns among market analysts.

Throughout the course of the week, investment funds from overseas were net buyers in Malaysia, with the greatest net inflow of RM299.98 million occurring on Wednesday. This substantial investment is part of a broader trend of increasing foreign interest in Malaysian equities, driven by the country's robust economic performance and favorable market conditions.

The sectors that have benefited the most from this influx include transportation and logistics, utilities, and healthcare. These sectors saw significant net foreign inflows, with transportation and logistics leading at RM223.6 million, followed by utilities at RM189.1 million, and healthcare at RM183.3 million. This sectoral investment pattern reflects the strategic interests of foreign investors in areas with strong growth potential and stable returns.

In contrast, sectors such as plantation and construction experienced net foreign outflows, amounting to RM64.7 million and RM6.7 million, respectively. This divergence in investment trends highlights the selective approach of foreign investors, who are focusing on sectors with higher growth prospects and lower risks.

The return of foreign funds to Bursa Malaysia is also supported by positive economic indicators. Malaysia's GDP grew by 4.2% year-on-year in the first quarter of 2024, surpassing the 3.9% growth forecast by a Reuters poll and the government's advance estimates. This economic performance has bolstered investor confidence, making Malaysia an attractive destination for foreign capital.

Moreover, the average daily trading volume has increased across all investor categories, with local retailers, local institutions, and foreign investors showing significant participation. Local retailers saw a 27.1% increase in trading volume, local institutions 18.0%, and foreign investors 8.5%. This heightened trading activity indicates a vibrant and dynamic market environment, further enhancing the appeal of Bursa Malaysia to foreign investors.

The recent semi-annual review of the FTSE Bursa Malaysia Index Series also plays a role in shaping investor sentiment. Changes to the index constituents, effective from June 24, 2024, reflect the evolving landscape of the Malaysian stock market and provide updated benchmarks for investors. These adjustments ensure that the indices remain representative of the market, thereby maintaining their relevance and utility for investment decisions.

The return of foreign funds to Bursa Malaysia, with a net inflow of RM535 million, underscores the growing confidence in Malaysia's economic stability and market potential. This positive trend is expected to continue, driven by favorable economic conditions, strategic sectoral investments, and robust market participation. As Malaysia continues to demonstrate strong economic performance, it is likely to attract even more foreign investment, further boosting the country's financial markets.

Ad Banner
Advertisement by Open Privilege

Read More

Loans Malaysia
Image Credits: Unsplash
LoansJune 21, 2024 at 11:30:00 PM

If I don't pay my car loan, what will happen?

When you take out a car loan, you enter into a legally binding agreement with your lender to repay the borrowed amount plus...

Relationships Malaysia
Image Credits: Unsplash
RelationshipsJune 21, 2024 at 11:00:00 PM

Effective strategies to fix your marriage in just 16 hours

Marriage can be one of the most fulfilling experiences in life, but it can also be challenging. When problems arise, they can feel...

Side Hustles Malaysia
Image Credits: Unsplash
Side HustlesJune 21, 2024 at 8:30:00 PM

How starting a side hustle cured my burnout and became my full-time job

Burnout is a term that has become all too familiar in today's fast-paced work environment. Many professionals find themselves trapped in a cycle...

Loans Malaysia
Image Credits: Unsplash
LoansJune 21, 2024 at 8:00:00 PM

Can you secure a loan without a credit check?

Many individuals find themselves in need of quick cash but are concerned about their credit history. This leads to a common question: Can...

Mortgages Malaysia
Image Credits: Unsplash
MortgagesJune 21, 2024 at 7:30:00 PM

How to deal with high mortgage rates: Tips for buyers and investors in 2024

In recent years, the mortgage market has experienced a significant shift, with rates climbing to levels not seen in decades. This surge has...

Retail Malaysia
Image Credits: Unsplash
RetailJune 21, 2024 at 6:00:00 PM

Why Starbucks is offering half-price frappuccinos

Starbucks has always been synonymous with premium coffee and a cozy ambiance, but recent changes in their pricing strategy have caught the attention...

Economy Malaysia
Image Credits: Unsplash
EconomyJune 21, 2024 at 1:30:00 PM

Malaysia's Q1 2024 investment boom: Approved investments soar 13% to RM83.7 billion

In a testament to Malaysia's growing economic prowess and investor confidence, the nation has witnessed a significant uptick in approved investments for the...

Health & Wellness Malaysia
Image Credits: Unsplash
Health & WellnessJune 21, 2024 at 11:30:00 AM

The power of slow-tempo exercises for enhanced results

In the fast-paced world of fitness, where high-intensity workouts and quick results often take center stage, a surprising trend is emerging: the power...

Home Living Malaysia
Image Credits: Unsplash
Home LivingJune 21, 2024 at 11:30:00 AM

How to choose the perfect design for your bathroom

Walk-in showers have become increasingly popular, offering a perfect blend of style, functionality, and accessibility. However, the common misconception that "one walk-in shower...

In Trend Malaysia
Image Credits: Unsplash
In TrendJune 21, 2024 at 10:30:00 AM

Over 71 tonnes of oil-contaminated sand removed from Sentosa's Beaches after Singapore oil spill

Singapore's pristine beaches faced an unprecedented challenge as over 71,000kg of oil-soaked sand was scooped up from Sentosa's shorelines following a major oil...

Finance Malaysia
Image Credits: Unsplash
FinanceJune 21, 2024 at 10:30:00 AM

Ringgit faces pressure: Cautious opening against US dollar

The Malaysian Ringgit has once again found itself at the center of attention as it opened easier against the US Dollar. This development...

Economy Malaysia
Image Credits: Unsplash
EconomyJune 21, 2024 at 10:00:00 AM

Reconsider the prices of necessary goods, govt said

In recent months, the Malaysian government has come under increasing pressure to reconsider its approach to essential goods pricing. As the nation grapples...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege