However, they said there were still uncertainties on the global and local fronts.

Inter-Pacific Securities head of research Pong Teng Siew said the performance during the first week of July surpassed that of the entire month of June, which saw a net inflow of RM87.9 million and net outflow of RM134.6 million.

“Even though the market saw profit-taking activities on Thursday, there were six straight days of net inflows, which is a good sign,” he said.

He said, however, there were still concerns about the trend.

“The current pattern is similar to the one recorded early this year when net buying was strong from Jan 9 to Feb 8. Then the trend reversed,” he said.

He said the decline in the Malaysian cash market in the fourth quarter of last year saw foreign investors going on bargain hunting activities.

After the cash market recovered, the funds started to let go of their stocks, he said.

Pong said the China-US trade war would continue to be a key factor in trading.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the average foreign fund participation ratio from Monday to Thursday stood at 22.5% versus 29% between June 24 and June 27.

He said the foreign fund inflows were quite impressive despite external uncertainties.

Afzanizam said the inflow of funds from foreign investors in the past two weeks also provided support for the ringgit.

“The impact of the (China-US) trade war on the local currency has somewhat subsided and the potential rate cut by the Fed has bolstered the optimism for better growth ahead,” he said.