KUALA LUMPUR (April 11): Foreign investors bought more Malaysian shares than they sold for the first time after consecutive outflows in nearly two months, latest data from the stock exchange showed.

Bursa Malaysia reported that foreign investors bought RM1.61 billion shares and sold RM1.49 billion, resulting in net inflow of RM115 million during the global stock rebound on Thursday (April 10). Local institutions were also net buyers, while local retail investors were net sellers.

“Foreign investors returning to Malaysia’s stock market is a positive sign — the key takeaway is that they have stopped selling, or at least halted the heavy selling,” Rakuten Trade’s head of equity sales Vincent Lau told The Edge.

Bursa Malaysia has recorded an outflow for every trading session since the start of 2025, except for three days in February, as investors sought refuge from escalating global trade tensions. Year-to-date, international investors have sold Malaysian shares worth over US$2 billion on a net basis.

Volatility in markets, including Bursa Malaysia, has risen dramatically with news flow on US tariffs. Global shares fell in the days leading up to the enforcement of the sweeping US reciprocal tariff, before staging a sharp rebound after US President Donald Trump announced a 90-day pause.

Fundamentally resilient large-cap stocks have benefitted from the strong foreign inflow following recent beatings, said Khoo Zing Sheng, a fund manager at Pheim Asset Management, told The Edge.

“The market is increasingly being viewed as a bargain-hunting opportunity for global investors,” Khoo said, noting that the KLCI is currently trading at 14 times its earnings — just a tad above its Covid-low of 13.6 times, and well below the 10-year median of 17 times.

For Rakuten’s Lau, the return of foreign buying could also signal a positive shift to encourage retail investors to re-enter the market, after they dumped a net RM248 million worth of Malaysian shares.