SELLING momentum outweighed buying interest on Bursa Malaysia last week (Nov 16-20) with foreign investors once again emerged net sellers with an outflow of RM268.8 mil.
As market reopened on Monday last week, foreign investors sold RM126.4 mil net of local equities with retailers and local institutions as net buyers at RM15 mil and RM111.4 mil respectively, according to MIDF Research.
“However, the retailers’ buying momentum was reversed mid-week with the largest outflow on Wednesday to the tune of -RM107.52 mil,” noted the research house in its weekly fund flow report.
“This was followed by local institutions momentum as well, but it recovered on Thursday with the largest inflow of the week at RM162.76 mil.”
By the end of the trading week, local institutions posted a net inflow of RM269.84 mil while retailers net sold to the tune of RM1.05 mil.
“Retailers stopped their buying streak on the sixth week after five weeks of buying momentum,” observed MIDF Research.
“We posit that last week was a mild profit taking from retailers as following the recent rally on the vaccines news. This has tapered down as of now pending for more concrete trial results in the future.”
Foreign investors participation last week were mostly recorded as net outflow with the largest inflow at RM169.66 mil on Wednesday and largest outflow was on Thursday at -RM170.54 mil.
Thus far in 2020, foreign investors’ net selling has reached RM23.40 bil worth of equities on Bursa Malaysia.
During the same period, net buying from retailers amounted to RM11.82 bil while local institutions bought to the tune of RM11.21 bil.
In comparison to another three Southeast Asian markets tracked by MIDF Research last week, Thailand recorded the most foreign net inflow at US$189.53 mil followed by Indonesia (US$83.05 mil), while Malaysia experienced the biggest outflow at US$65.13 mil followed by the Philippines (US$61.86 mil).
In terms of participation, retail investors recorded a weekly decrease of 0.20% in terms of average daily trade value (ADTV) while foreign investor experienced an ADTV decrease of 16.08% with local institution’s ADTV at +5.25%.
The top three stocks with the highest net money inflow last week were Malayan Banking Bhd at RM5.06 mil followed by Dialog Group Bhd (RM2.79 mil) and RHB Bank Bhd (RM2.19 mil). – Nov 23, 2020
