Foreign fund outflow on Bursa escalates past half a million ringgit mark

FOREIGN investors continued to net sell Malaysian equities for the week ended Sept 23, marking the third consecutive week of net foreign fund outflows from Bursa Malaysia.

The net outflow for the week stood at -RM562.61 mil with net selling activities occurring every trading session during the week – in fact, for eight consecutive trading days since Sept 13, according to MIDF Research.

“The bulk of foreign net outflows were seen on Wednesday (Sept 21), Thursday (Sept 22) and Friday (Sept 23) at -RM193.63 mil, -RM123.36 mil and -RM218.03 mil respectively,” the research house pointed out in its weekly fund flow report.

“Foreigners also net sold -RM17.40 mil on Monday (Sept 19) and -RM10.19 mil (Sept 20) on Tuesday.”

Meanwhile, local institutions net bought RM351.23 mil last week after briefly net sold -RM4.67 mil in the prior week.

They net sold -RM52.15 mil on Monday (Sept 19) before turning net buyers for the rest of the week. Most of the net buying were seen on Wednesday (Sept 21) and Friday (Sept 23) at RM172.03 mil and RM147.94 mil respectively.

Additionally, they also net bought RM5.35 mil on Tuesday (Sept 22) and RM78.06 mil on Thursday (Sept 22).

Meanwhile, local retailers also maintained their net buying stance last week at RM211.38 mil. They were net buyers for every session of the week with the bulk of the amount coming in on Monday (Sept 19) at RM69.55 mil and Friday (Sept 23) at RM70.09 mil.

Moreover, they also net bought RM4.84 mil on Tuesday (Sept 20), RM21.60 mil on Wednesday (Sept 21) and RM45.30 mil on Thursday (Sept 22).

The top three sectors which saw net outflows by foreign investors last week were healthcare at -RM178.7 mil, financial services (-RM143.5 mil) and industrial products and services (-RM102.2 mil).

Meanwhile, there were only two sectors with net inflows last week, namely construction at RM66.9 mil and telecommunications and media (RM5.2 mil).

To date, international funds have been net buyers for 24 out of the 38 weeks of 2022 with a total net inflow of RM7.36 bil while local institutions were net sellers for 29 out of 38 weeks with a total net outflow of -RM9.56 bil.

Local retailers have been net buyers for 23 out of 38 weeks of 2022. Year-to-date, they have been net buyers at RM2.19 bil.

In terms of participation, there was a decline in average daily trade value (ADTV) across the board, led by retailers at -15.66%, foreign investors (-15.20%) and local institutions (-8.00%).

In comparison with another three Southeast Asian markets tracked by MIDF Research last week, all four markets posted net outflow with Malaysia being the highest at US$123.21 mil followed by Thailand (-US$41.65 mil), Indonesia (-US$32.60 mil) and the Philippines (-US$30.2 mil)

The top three stocks with the highest net money inflow last week were Kuala Lumpur Kepong Bhd (RM4.73 mil), CIMB Group Holdings Bhd (RM1.63 mil) and Malaysia Airports Holdings Bhd (RM1.03 mil). – Sept 26, 2022

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