LAST week saw heavy outflow from Bursa Malaysia as foreign investors net sold RM436.9 mil of equities from the local bourse – a rate not seen since December 2021.
The benchmark FBM KLCI slumped accordingly, declining every session of the week to close below the 1,500-point mark on Friday (June 10).
Foreign investors were net sellers every trading day of the week from Tuesday (June 7) to Friday (June 10), continuing their net selling trend which started from the previous Thursday (June 2), therefore marking six consecutive days of net selling.
The steepest net selling days by the foreigners were Thursday (June 9) and Friday (June 10) at RM189.1 mil and RM183.2 mil respectively.
“It should be noted that it was a shortened trading week as Monday (June 6) was a public holiday in conjunction with the official birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah,” observed MIDF Research in its weekly fund flow report.
On the contrary, local institutions turned net buyers at RM244.9 mil after being net sellers for four consecutive weeks. They were joined by retailers who net bought RM192 mil.
To date, international funds have been net buyers for 17 out of the 23 weeks of 2022 with total net inflow of RM6.96 bil.
Local institutions began the week as net sellers at RM12.2 mil on Tuesday (June 7) before turning net buyers for the rest of the week. Their strongest net buying day was on Thursday (June 9) at RM129 mil.
They have been net sellers for 19 out of 23 weeks this year. Year-to-date (YTD), they have net sold RM8.27 bil of equities.
Meanwhile, local retailers were net buyers every session of the week except on Wednesday (June 8) when they net sold RM3.4 mil of equities. Their strongest net buying day was Friday (June 10) at RM91.5 mil.
Local retailers have been net buyers for 14 out of 23 weeks of 2022. YTD, they have been net buyers at RM1.31 bil.
The three sectors that saw the highest net selling by foreigners were finance (-RM182.8 mil), utilities (-RM87.4 mil) and transport (-RM76.4 mil).
The sectors which posted net buying by foreign investors were consumer, healthcare and property at RM23.6 mil, RM7.2 mil and RM4.8 mil, respectively.
In terms of participation, only retail investors saw a weekly growth in the average daily trade value (ADTV) at 0.32%. Both institutional investors and foreign investors recorded a reduction of -20.67% and -56.81%, respectively.
In comparison with another three Southeast Asian markets tracked by MIDF Research last week, Indonesia was the only net inflow gainer with US$89.77 mil with Thailand incurring the largest net outflow at -US$170.14 followed by Malaysia (-US$99.37 mil) while the Philippines continued to encounter outflow at -US$48.27 mil.
The top three stocks with the highest net money inflow last week were Sime Darby Plantation Bhd (RM2.28 mil), Kuala Lumpur Kepong Bhd (RM1.59 mil) and Hong Leong Bank Bhd (RM1.07 mil). – June 13, 2022
