Fifth week and counting: Suddenly Bursa is buzzing with persistent foreign funds inflow

THE net buying spree by foreign investors on Bursa Malaysia stretches into its fifth consecutive week at RM246.3 mil although this is a reduction of -35.7% from RM382.8 mil in the previous week.

They briefly net sold -RM70.0 mil on Monday (Nov 27) but were net buyers for the rest of the week, according to MIDF Research.

“The top three stocks they were net selling were CIMB Group Holdings Bhd (-RM29.4 mil), Tenaga Nasional Bhd (-RM10.7 mil) and MISC Bhd (-RM10.0 mil),” the research house pointed out in its weekly fund flow report.

“Foreign investors net bought RM114.3 mil on Tuesday (Nov 28), RM59.8 mil on Wednesday (Nov 29), RM30.6 mil on Thursday (Nov 30) and RM111.5 mil on Friday (Dec 1).”

The top three sectors with the highest net foreign inflow were financial services (RM150.6 mil), utilities (RM132.2 mil) and healthcare (RM64.6 mil) while the top three sectors with the highest net foreign outflows were consumer products & services (-RM112.1 mil), transport & logistics (-RM48.9 mil) and energy (-RM20.6 mil).

As opposed to foreign investors, local institutions continued to net sell for the fifth consecutive week, disposing -RM457.2 mil of equities. They net bought RM7.5 mil on Monday (Nov 27) but net sold from Tuesday (Nov 28) to Friday (Dec 1).

They net sold -RM152.7 mil on Tuesday (Nov 28), -RM123.2 mil on Wednesday (Nov 29), -RM45.2 mil on Thursday (Nov 30) and -RM143.7m on Friday (Dec 1).

On the contrary, local retailers net bought RM210.9 mil on Bursa Malaysia last week after seven weeks of net selling. Their purchases took place every trading session during the week which was something last seen since early January 2023.

In terms of participation, there were increases in average daily trading volume (ADTV) across the board among local retailers (+4.5%), local institutions (+7.7%), and foreign investors (+110.2%).

In comparison with another four Southeast Asian markets tracked by MIDF Research, both Indonesia and the Philippines again posted a net foreign inflow of US$38.4 mil (third straight week) and USD34.9 mil (second consecutive week) respectively.

However, Thailand again saw the highest net foreign outflow last week at -US$168.4 mil while Vietnam recorded net selling for the fourth consecutive week at -US$29.0 mil.

The top three stocks with the highest net money inflow from foreign investors last week were Public Bank Bhd (RM261.3 mil), YTL Power International Bhd (RM71.8 mil) and YTL Corp Bhd (RM60.6 mil). – Dec 4, 2023

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