Foreign Buying on Bursa Malaysia Surges Nearly Fivefold to RM1.4 Billion — MIDF

KUALA LUMPUR, AUGUST 2026 — Foreign investor appetite for Malaysian equities strengthened sharply, with net buying on Bursa Malaysia reaching RM1.4 billion in the latest reported week, according to MIDF Research.

The amount was almost five times higher than the RM299.6 million net inflow recorded in the preceding week, reflecting a significant increase in foreign participation in the local equity market.

MIDF said foreign investors were net buyers on every trading day during the week except Friday.

The strongest foreign inflow was recorded on Monday at RM574.9 million, while Friday saw a relatively marginal RM1.6 million in net selling.

The figures indicate that international investors maintained strong buying interest for most of the week despite some profit-taking towards the end of the trading period.

The financial services sector was by far the biggest beneficiary of renewed foreign buying, registering approximately RM1.3 billion in net inflows.

Among financial stocks, foreign investors showed particularly strong interest in Public Bank Bhd, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd.

The significant concentration of foreign funds in banking counters highlighted investors’ preference for large-cap, liquid companies closely linked to Malaysia’s domestic economic performance.

Financial stocks are often regarded as a proxy for broader economic conditions because banking earnings can benefit from expanding business activity, lending demand and consumer spending.

Apart from financial services, the utilities sector recorded RM118.9 million in net foreign inflows.

The telecommunications and media sector followed with RM54.8 million in net purchases.

These sectors contributed to the overall improvement in foreign participation, although the scale of investment remained substantially smaller than the inflows recorded by financial services.

Not all sectors benefited from the return of foreign capital.

Technology stocks recorded the largest foreign outflow at RM140.2 million, according to MIDF.

Consumer products and services registered RM50.2 million in net foreign selling, while property stocks saw net outflows of RM25.9 million.

The mixed sector performance suggests foreign investors were selective rather than broadly increasing exposure across all areas of the Malaysian market.

While foreign investors increased their holdings, Malaysian institutional investors moved in the opposite direction.

Local institutions were net sellers throughout every trading session of the week, disposing of RM1.12 billion worth of Malaysian equities on a net basis.

It marked the second consecutive week of net selling by domestic institutions.

The contrasting flows illustrate how increased overseas demand absorbed a sizeable portion of the equities being sold by domestic institutional players.

Local retail investors were also overall net sellers during the week.

Retail participants registered net buying only on Friday, when purchases amounted to RM78.2 million.

For the entire week, however, Malaysian retail investors recorded RM284.4 million in net selling.

The figures underline the unusually strong role played by international investors during the period, with foreign inflows significantly exceeding domestic buying activity.

The return of foreign interest was also reflected in higher trading activity.

MIDF said average daily trading volume increased across all three main investor classifications.

Foreign investors recorded the strongest increase at 35.8 per cent, followed by local institutions at 33.1 per cent and retail investors at 19 per cent.

Higher trading volumes generally indicate greater market participation and liquidity, particularly when accompanied by substantial fund inflows into large-cap stocks.

According to data cited from Affin Hwang Investment Bank, cumulative net foreign inflows into Malaysian equities for August stood at RM1.05 billion.

On a year-to-date basis, foreign investors had accumulated approximately RM1.54 billion in net Malaysian equity purchases.

The sharp weekly increase therefore represented an important contribution to the positive year-to-date foreign flow position.

The strong interest in Public Bank, Maybank and CIMB reflected a broader attraction towards Malaysian banking stocks during the period.

Subsequent analysis by The Edge noted that Public Bank attracted approximately RM377.2 million in foreign buying during the week ended Aug. 23, while Maybank received RM299.8 million and CIMB RM250.3 million. Tenaga Nasional was another major beneficiary, attracting RM187.5 million.

The same analysis linked the stronger foreign appetite for Malaysian equities to factors including Malaysia’s economic growth outlook, a stronger ringgit and improving sentiment towards emerging markets.

The RM1.4 billion weekly inflow represented a marked improvement in international investor sentiment toward Bursa Malaysia.

The concentration of purchases in major banking counters also suggested foreign funds were favouring companies with high liquidity, significant market capitalisation and direct exposure to Malaysia’s economic growth.

However, foreign flows can remain sensitive to global interest rates, currency movements, geopolitical developments and economic conditions.

A strong week of buying therefore does not necessarily guarantee that inflows will continue at the same pace.

Nevertheless, the nearly fivefold weekly increase demonstrated a substantial improvement in foreign participation and reinforced Malaysia’s position as an increasingly watched market among regional investors during the period.