FOREIGN investors emerged the biggest net sellers at Bursa Malaysia last week (Nov 23-27) with a fund outflow of RM86.8 mil.
Ironically, they bought RM169.5 mil net of local equities on Monday (Nov 23) but their buying momentum subsequently tapered off, according to MIDF Research.
“However, the buying momentum for retailers started on Tuesday (Nov 24) with the largest inflow at the tune of RM134.4 mil and smallest on Wednesday (Nov 25) with a net inflow to the tune of RM2.9 mil,” the research house pointed out in its weekly fund flow report.
“This momentum continued until the end of the week. On Friday, retailers net bought to the tune of RM16.27 mil.”
Meanwhile, local institutions were net sellers every day except Friday (Nov 27). Their largest net selling was recorded on Monday at t -RM150.9 mil while the smallest was on Thursday at -RM11.59 mil. Nevertheless, they ended the week with net buying of RM141.8 mil.
On the other extreme, retailers are the only net buyers for the week to the tune of RM163.8 mil.
“We posit that retailers buying appetite has shifted from mild profit taking behaviour on the week of Nov 16-20,” noted MIDF Research.
“In particular, there was jitteriness prior to the voting on Budget 2021. On the week of Nov 16-20, retailers stopped its buying streak on the sixth week after five weeks of buying momentum.
Thus far in 2020, net selling among foreign investors has reached -RM23.48 bil worth of equities on Bursa Malaysia.
Net buying amounted to RM11.98 bil came from retailers thus far in 2020, while local institution bought to the tune of RM11.13 bil.
In comparison to another three Southeast Asian markets tracked by MIDF Research last week, Thailand recorded the highest foreign net inflow at US$193.53 mil with Indonesia at US$21.25 mil while the Philippines posted the biggest outflow at -US$162.56 mil and Malaysia at -US$21.42 mil.
In terms of participation, retail investors recorded a weekly decrease of -20.65% in average daily trade value (ADTV) while foreign investors experienced An ADTV decrease of -17.03% and local institution at -22.77%.
The top three stocks with the highest net money inflow last week were Top Glove Corp Bhd at RM10.96 mil followed by Petronas Dagangan Bhd (RM4.1mil) and RHB Bank Bhd (RM2.6 mil). – Nov 30, 2020
