Are foreign investors set to propel Bursa Malaysia in the days ahead?

FOREIGN investors remained net buyers of Malaysian equities for the second week running during the week ended March 12 with an inflow amounting to +RM240.71 mil.

As the market reopened last Monday (March 8), foreign investors sold -RM62.93 mil net of local equities with retailers and local institutions emerging net buyers to the tune of +RM48.95 mil and +RM13.98 mil respectively.

“Foreign investors were net buyers every day except Monday (March 8) and Friday (March 12) during last week,” observed MIDF Research in its weekly fund flow report.

“This came amid the resumption of more economic activities and re-opening of more sectors (i.e. entertainment industry) as well as decreasing number of new COVID-19 cases recorded in Malaysia.”

On a year-to-date basis, foreign net selling this year came in lower when compared against the same period last year. Net selling by foreigners thus far in 2021 stands at -RM1.17 bil as compared to -RM5.21 bil during the same period in 2020.

As for the retailers, they were net buyers every day last week except for Tuesday (March 9). Their largest net buying was recorded on Friday (March 12) at RM74.73 mil while their smallest net purchase was on Wednesday (March 10) at RM4.80 mil.

Meanwhile, local institutions were net sellers every day of the week except on Monday (March 8) and Friday (March 12). Their cumulative weekly outflow was to the tune of -RM424.04 mil.

The biggest net selling was on Wednesday (March 10) at -RM191.37 mil while the smallest net selling was on Tuesday (March 9) at -RM110.93 mil.

In comparison to other three Southeast Asian markets tracked by MIDF Research last week; Malaysia and Thailand recorded net inflow at US$58.36 mil and US$24.58 mil while the Philippines and Indonesia posted net outflow of -US$258.58 mil and -US$97.93 mil respectively.

In terms of participation, both retail investors and local institutions recorded a weekly increase of +3.26% and +6.92% respectively in terms of average daily trade value (ADTV) while that of foreign investors decreased by -22.37%.

The top three stocks with the highest net money inflow last week were IHH Healthcare Bhd at RM6.29 mil) followed by Malayan Banking Bhd (RM5.44 mil) and Top Glove Corp Bhd (RM3.83 mil). – March 15, 2021

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