Despite the gloomy global economic outlook, foreign investors still view Malaysia as a lucrative investment destination, owing to the country’s stable political landscape and steady energy prices.

Rakuten Trade Sdn Bhd Head of Research Kenny Yee said this positive sentiment has resurfaced as trade tension between the United States and China have subsided.

Investors are now more hopeful that both powerhouses would resolve tariff issues, following renewed trade negotiations between both parties.

"Not only is this obvious in our local stock market but it is also visible through the positive Wall Street and regional stock market performance," he told Malaysia's National News Agency (Bernama). 

On Thursday, foreign investors accounted for 31.9 percent of the total trading participation, while institutions took up 49.7 percent and retail investors accounted for the remainder.

The day’s trading saw net foreign inflow of RM174.7 million while buying stood at RM907.5 million and selling at RM732.8 million.