A total of RM2.9 billion of funds have been transacted into Bursa Malaysia, as foreign investors continue to pursue the Malaysian stock market due to its corporate earning prospects and stable economy.
The amount of funds was said to be the highest among stock market in Southeast Asia., while the strong influx of funds has allowed Bursa’s benchmark FBM KLCI to continue at its highest levels in four years with 1,870 points.
Furthermore, the only other country in the region to have experience an influx of foreign investments is Vietnam, who was able to gain RM1.6 billion to date.
Meanwhile, Philippine and Thailand were experiencing foreign outflows from their stock market.
MIDF Research analyst Adam Mohamed Rahim said that a total of RM2.85billion of foreign fund has flowed into Malaysia as of last Friday.
He said this was due to political stability and lack of domestic terrorism, which differed with its regional neighbours, according to a recent World Bank report.
“Private investments have also increased the gross domestic products (GDP) growth to 26 per cent in 2016, in comparison to 23.4 per cent in 2010.
“This is different from Thailand which have been showing a slow down,” he said.
Data provided by MIDF Research revealed that foreign investors had been buying local stocks at more than RM1billion since last week.
