KUALA LUMPUR — Foreign funds returned to Bursa Malaysia last week, making it one of only two Asian markets in MBSB Investment Bank Bhd’s regional watchlist to record net inflows, even as most neighbouring bourses continued to face sustained selling pressure.
In its latest Fund Flow Report for the week ended March 27, MBSB said Malaysia attracted RM587.6 million in net foreign inflows, while Thailand posted US$58.9 million, bucking a wider regional trend of capital flight from equities, Bernama reported.
Across the eight Asian markets tracked by the bank, foreign investors extended their selling streak to a sixth consecutive week, with total net outflows reaching US$15.68 billion. The heaviest withdrawals were seen in South Korea, India, Taiwan, Indonesia, Vietnam and the Philippines.
“Thailand broke a three-week consecutive net selling streak, recording US$58.9 million in net foreign inflows. This came despite a widening external imbalance, with the trade balance swinging to a US$2.83 billion deficit in February 2026 (Feb 2025: +US$2.0 billion), missing expectations and marking a fifth consecutive shortfall,” the investment bank said.
It said Thailand’s imports jumped 31.8 per cent year-on-year, supported by resilient domestic demand and election-related fiscal stimulus, while export growth moderated to 9.9 per cent, signalling softer external demand amid persistent geopolitical uncertainties.
South Korea, meanwhile, recorded the largest foreign outflow in the region, with investors pulling US$9.03 billion, marking a sixth straight week of net selling.
“This was amid rising price pressures, with producer prices increasing 2.4 per cent y-o-y in February 2026 (January 2026: +1.8 per cent), marking the fastest rise since July 2024.
“The acceleration was broad-based across services, manufacturing, and agricultural products, while monthly prices rose 0.6 per cent month-on-month for a second straight month, pointing to sustained upstream inflationary pressures,” it added.
On Bursa Malaysia, MBSB said foreign investors were net buyers on all four trading days last week, underscoring the renewed return of overseas appetite for Malaysian equities.
“Foreign investors were net buyers on all four trading days during the week. The largest inflow was recorded on Wednesday (RM191.5 million), followed by Friday (RM176.2 million), Thursday (RM112.9 million), and Tuesday (RM107.0 million),” it said.
The strongest foreign buying interest was concentrated in the plantation sector, which saw RM385.9 million in inflows, followed by financial services (RM295.6 million) and energy (RM139.1 million).
By contrast, the technology sector led foreign outflows at RM123.1 million, ahead of consumer products and services (RM89.2 million) and construction (RM78.5 million).
MBSB added that local institutions reversed a two-week buying streak, posting RM582.9 million in net outflows, while local retailers remained net sellers for a second straight week with a modest RM4.7 million outflow.
“The average daily trading volume saw a broad-based decline: local retailers by 0.4%, local institutions increased by 1.1%, and foreign investors saw a 14.7% fall,” it added. – March 30, 2026