Friday 29 Mar 2024
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KUALA LUMPUR (Sept 5): Foreign buying of Malaysian equities on Bursa Malaysia continued last week, albeit at a slower pace of RM190.9 million versus RM244.6 million the prior week.

In its weekly fund flow report on Monday (Sept 5), the MIDF Research team said this was the seventh consecutive week of net inflows from foreigners.

The research house said it was also the second longest streak of foreign net buying so far this year.

“The longest streak was from the week ended Feb 11 to the week ended April 8, consisting of nine consecutive weeks.

“Foreigners were net sellers only last Thursday at a rate of RM90.1 million, but were net buyers for the rest of the week.

“The heaviest inflow of RM219.6 million was recorded last Tuesday, while Monday saw an inflow of RM61 million and Friday RM400,000,” it said.

The market was closed last Wednesday in conjunction with Malaysia’s Independence Day.

MIDF said the top three sectors that saw the highest net inflows by foreigners last week were financial services at RM201.7 million, consumer products and services at RM58.4 million, and utilities at RM51.6 million.

“Meanwhile, the highest net outflows were from industrial products and services at RM102.8 million, technology at RM51.4 million, and plantation at RM26.6 million.

“Going into the seventh consecutive week, local institutions remained net sellers after they net sold RM233.2 million last week,” it said.

MIDF said the amount they sold was RM66.4 million last Monday and RM252.2 million on Tuesday.

It said they turned into net buyers after the market reopened last Thursday at a rate of RM79.1 million, and RM6.3 million on Friday, but these were not enough to offset the outflows recorded earlier in the week.

“Local retailers were still on a net buying spree last week as they bought RM42.6 million worth of equities.

“They were net buyers every trading day except last Friday,” it said.

MIDF said that to date, international investors were net buyers for 24 out of 35 weeks of 2022, with a total net inflow of RM8.16 billion.

It said local institutions were net sellers for 28 out of 35 weeks, with a total net outflow of RM10 billion.

“Local retailers were net buyers for 23 out of 35 weeks of 2022.

“Year-to-date, they have net bought RM1.84 billion,” it said.

MIDF said that in terms of participation, there was a decrease in average daily trade value (ADTV) among retail investors by 4.5% and institutional investors by 1.2%, while foreign investors recorded a growth of 60.3% in ADTV.

Commenting on international markets, MIDF said fears of aggressive policy tightening sent stocks lower last week, as all three main indices on Wall Street suffered their third straight weekly losses. Dow Jones fell by 3% to 31,318.44, the S&P 500 declined by 3.3% to 3,924.26, and the Nasdaq lost 4.2% to 11,630.86.

“Out of the 16 major indices that we track, 14 were in negative territory, except for Germany’s DAX and Indonesia’s Jakarta Composite Index, which added 0.6%.

“Among the biggest decliners, Taiwan’s TWSE Index lost 4%, followed by Hong Kong’s Hang Seng Index that was down by 3.6% and Japan’s Nikkei by 3.5%,” it said.

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