FOREIGN investors remained net buyers of local equities for the second consecutive week last week (Jan 29-Feb 2) albeit with a lower net inflow of RM131.8 mil compared to RM267.7 mil in the prior week.
It was nevertheless a shortened trading week with Kuala Lumpur enjoying a public holiday in conjunction with the Federal Territory Day on Thursday (Feb 1).
They net sold -RM96.2 mil on Monday (Jan 29) and -RM24.6 mil on Tuesday (Jan 30) but were net buyers on Wednesday (Jan 31) at RM166.0 mil and RM86.6 mil on Friday (Feb 2), according to MIDF Research.
“The top three sectors with the highest net foreign inflows were telecommunications and media (RM85.5 mil), industrial products and services (RM37.5 mil) and plantation (RM23.2 mil),” the research house pointed out in its weekly fund flow report.
“The top three sectors with the highest net foreign outflows were utilities (-RM84.8 mil), property (-RM49.2 mil) and REITs (-RM16.0 mil).”
On the contrary, local institutions maintained their stance as net sellers for the second straight week at -RM141.3 mil with the bulk of the net selling occurring on Wednesday (Jan 31) and Friday (Feb 2) at -RM175.1 mil and -RM116.8 mil respectively. They net bought RM97.3 mil on Monday (Jan 29) and RM53.3 mil on Tuesday (Jan 30).
However, local retailers recorded their first weekly net buy this year at RM9.5 mil after net selling for four consecutive weeks. They net bought RM9.1 mil on Wednesday (Jan 31) and RM30.2 mil on Friday (Feb 2) after net selling -RM1.1 mil on Monday (Jan 29) and -RM28.8 mil on Tuesday (Jan 31).
In terms of participation, there was an increase in average daily trading volume (ADTV) among foreign investors by +4.5% while local retailers and local institutions saw declines of -17.5% and -15.5% respectively.
In comparison with another four Southeast Asian markets tracked by MIDF Research, Indonesia raked in the highest foreign net inflow at US$310.5 mil (also its highest in 43 weeks) followed by Thailand with US$55. 8 mil after four straight weeks of net outflows and the Philippines at US$11.5 mil (inflow for second consecutive week).
Vietnam was the only market with a net foreign fund outflow last week at -US$500,000 after two straight weeks of net inflows.
The top three stocks with the highest net money inflow from foreign investors last week were Malayan Banking Bhd (RM191.1 mil), Sime Darby Bhd (RM74.3 mil) and Telekom Malaysia Bhd (RM67.5 mil). – Feb 5, 2024
