KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Bursa Malaysia recorded a robust foreign net inflow of RM303 million in the week ending July 4, marking the second consecutive week of foreign buying and the strongest since mid-May, according to MIDF Amanah Investment Bank Bhd. This represents a ninefold surge from the RM33.2 million net inflow recorded the week before.
Foreign investors were net buyers on four out of five trading days, with Thursday leading the momentum at RM112.6 million, followed closely by Tuesday’s RM106.8 million inflow. The only exception was Friday, which posted a minor net outflow of RM6 million.
Sector Rotation: What Foreign Investors Are Buying and Selling
Top 3 Sectors with Highest Net Inflows:
Utilities: RM419.3 million
Industrial Products & Services: RM182.8 million
Transportation & Logistics: RM98.2 million
Top 3 Sectors with Highest Net Outflows:
Healthcare: RM177.0 million
Telecommunications & Media: RM153.7 million
Financial Services: RM78.9 million
The significant rotation into defensive and infrastructure-linked sectors such as utilities and industrials suggests that foreign investors are positioning cautiously amid global policy uncertainty, particularly with the July 9 US tariff deadline looming.
Local Flows: Institutions Stay Bullish, Retail Pulls Back
Local institutions continued their buying streak for a seventh straight week, albeit at a slower pace, with RM61 million net inflow, down from RM142.8 million previously.
Local retailers, meanwhile, accelerated their net selling, with a RM363.9 million outflow, more than double the RM176 million outflow in the prior week.
This divergence signals a return of institutional conviction, both local and foreign, while retail sentiment remains cautious, likely due to short-term macro headwinds and profit-taking.
Market Participation: All Segments Turn More Active
Trading activity increased across the board:
Foreign investors: +8.2% in average daily volume
Local institutions: +36.2%
Retail investors: +6.6%
The volume uptick suggests that market liquidity is improving, and fund managers may be positioning ahead of earnings season and major policy clarity post-July 9.
Investor Takeaway
The latest foreign inflow is a positive signal for Malaysia’s capital markets, suggesting renewed foreign interest and confidence in Malaysia’s economic resilience and political stability. Investors should watch for:
Continued foreign fund momentum in infrastructure, utilities, and industrial sectors
Potential rebound in underperforming sectors like healthcare once policy clarity emerges
Market reaction post-July 9, when tariff decisions and global trade headlines may shift sentiment
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