Foreign funds remains net sellers at Bursa Malaysia; retailers to the rescue

FOREIGN investors remained net sellers of Malaysian equities for the second week in a row during the week ended June 11 with an outflow of -RM193.86 mil.

This second week of outflow came after two consecutive weeks of net inflows.

As the market reopened last Tuesday (June 8), foreign investors bought RM102.48 mil net of local equities with both retailers and local institutions emerging as net buyers and net sellers to the tune of RM3.98 mil and -RM106.45 mil respectively.

“Foreign investors were net sellers on a majority of the four-day trading week with net selling occurring on Wednesday (June 9), Thursday (June 10) and Friday (June 11),” observed MIDF Research in its weekly fund flow report. “The largest foreign outflow was recorded on Friday (June 11) at -RM142.58 mil.”

Meanwhile, retailers were net buyers every day of the week. Their largest net buying was recorded on Wednesday (June 9) at +RM82.80 mil with their smallest net buying occurring on Tuesday (June 8).

Cumulatively, retailers net bought +RM191.48 mil worth of equities in Bursa during the week.

On the other hand, the cumulative weekly inflow for local institutions stood at RM2.40 mil. Their net buying occurred from Wednesday (June 9) to Friday (June 11).

The only net selling made by local institutions was on Tuesday (June 8) at -RM106.45 mil. Conversely, their largest net buying was on Friday (June 11) to the tune of +RM72.67 mil.

Since the beginning of 2021, retailers have cumulatively been the only net buyers in the Malaysian equity market to the tune of RM7.09 bil while local institutions and foreign investors have been net sellers to the tune of -RM3.67 bil and -RM3.42 bil, respectively.

In terms of participation, retail investors recorded a weekly decrease of -21.33% while local institutions and foreign investors posted a weekly decrease of -21.08% and -0.85% respectively in average daily trade value (ADTV).

In comparison with another three Southeast Asian markets tracked by MIDF Research last week, Malaysia was the only market which posted a net outflow with -US$47.17 mil while Indonesia raked in the most inflow with US$187.08 mil followed by Thailand (US$114.75 mil) and the Philippines (US$18.17 mil).

The top three stocks with the highest net money inflow last week were Press Metal Aluminium Holdings Bhd (RM2.71 mil), Malayan Banking Bhd (Maybank) (RM2.69 mil) and Public Bank Bhd (RM2.08 mil). – June 14, 2021

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