The Borneo Post

Foreign investors remain net seller with RM301.2 mln outflow

KUALA LUMPUR: Foreign investors remained net sellers last week for the third consecutive week to the tune of RM301.2 million, 3.7 times higher than the RM81.9 million recorded in the previous week, said MIDF Research.

The trading week was shortened to four days last week as Monday was announced as a public holiday by newly-minted Prime Minister Datuk Seri Anwar Ibrahim.

In a note yesterday, MIDF Research said foreign investors took profit after a meteoric rise of the barometer FTSE Bursa Malaysia KLCI (FBM KLCI) in the prior week when Anwar was named Prime Minister.

They net sold every day of the week except on Thursday, when they net bought RM77.7 million.

“The heaviest net selling was on Friday at RM292.8 million, as uncertainty loomed over the delay in the Cabinet lineup announcement, which was eventually revealed on the same night.

“Foreign investors also net sold RM10.7 million on Tuesday and RM75.4 million on Wednesday,” it said.

The research house said that the top three sectors which saw net inflows by foreign investors last week were technology at RM72.8 million, utilities at RM40.3 million and construction at RM39.4 million.

Meanwhile, it said the three sectors with net outflows were financial services at RM153.5 million, healthcare at RM128.1 million, and industrial products and services at RM101.5 million.

On the other hand, it noted local institutions came on strong to pick up on the buying opportunity amidst a more stabilised political arena with the formation of a unity government.

“They net bought RM431.2 million last week, the highest since the week ended Sept 30, 2022 at RM669.2 million.

“They started the week net selling RM10.7 million before turning net buyers for the remaining days, recording the strongest net buy on Friday at RM301.5 million,” it said.

As for local retailers, MIDF Research said they turned net sellers for the week, reversing their net buying trend after two weeks with a net selling of RM130.1 million.

It noted the local retailers net bought RM21.4 million on Tuesday before turning net sellers from Wednesday to Friday with the highest net selling being on Thursday at RM128.4 million.

Of international investors, the research house said they have been net buyers for 26 out of the 48 weeks of 2022, with a total net inflow of RM5.53 billion, while local institutions were net sellers for 32 out of 48 weeks, with a total net outflow of RM7.57 billion.

On another note, MIDF Research said the local retailers were net buyers for 30 out of 48 weeks and year-to-date, they have been net buyers at RM2.04 billion.

In terms of participation, there was an increase in average daily trading volume among foreign investors and local institutions by 61.6 per cent and 7.6 per cent, respectively, while retailers saw a decline of 10.5 per cent.

On the regional performance, the research house highlighted that foreign funds continued pouring into Asian equities for the sixth consecutive week.

“Based on the provisional aggregate data for the seven Asian exchanges that we track, investors classified as ‘foreign’ net bought US$3.26 billion, which was 82.0 per cent higher than the US$1.79 billion recorded in the previous week. (US$1=RM4.38)

“There have been 20 weeks of net buying and 28 weeks of net selling so far this year. — Bernama

Business

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2022-12-06T08:00:00.0000000Z

2022-12-06T08:00:00.0000000Z

https://epaper.theborneopost.com/article/282406993380698

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