Foreign funds snap six weeks of net buying with RM150m outflow last week

FOREIGN investors’ net buying on Bursa Malaysia for the past six weeks came to an end as they net sold -RM153.4 mil during the week ended Aug 25.

Last week began with a net foreign inflow of RM6.2 mil which shifted to outflows from Tuesday (Aug 22) to Thursday (Aug 24) amounting to -RM213.9 mil, according to MIDF Research.

“(However) foreigners once again became net buyers on Friday (Aug 25) with a RM54.4 mil inflow,” the research house pointed out in its weekly fund flow report.

“This followed the unveiling of favourable inflation statistics which showed a +2.0% year-on-year (yoy) increase in CPI (consumer price index) for July 2023, marking the smallest growth in two years.”

As it is, foreign investors were showing interest in stocks such as Boustead Plantations Bhd (RM67.6 mil), UMW Holdings Bhd (RM44.6 mil) and Malaysia Airports Holdings Bhd (RM20.8 mil).

Year-to-date (YTD), foreign investors have been net sellers of domestic equities at a rate of -RM2.56 bil.

The top three sectors with the highest net foreign inflows were utilities (RM122.4 mil), plantation (RM112.2 mil) and property (RM54.0 mil). Meanwhile, the top three sectors that posted the highest net foreign outflows were financial services (-RM222.3 mil), consumer products & services (-RM107.1 mil) and transportation & logistics (-RM60.2 mil).

Local institutions maintained their status as net buyers for the second consecutive week at RM277.3 mil. YTD, local institutions have netted RM3.04 bil in inflows.

However, local retailers continued their net selling trend for the seventh consecutive week by disposing of -RM124.0 mil worth of domestic equities last week. YTD, local retailers have recorded outflows of -RM472.9 mil.

In terms of participation, there was a decline in average daily trading volume (ADTV) across the board – retail investors at -1.8%, local institutions (-2.6%) and foreign investors (-0.5%).

In comparison with another four Southeast Asian markets tracked by MIDF Research last week, only Thailand posted a net foreign fund inflow with US$34.3 mil while Indonesia again recorded the highest net outflow at -US$176.7 mil, followed by Vietnam (-US$75.4 mil), Malaysia (-US$32.9 mil) and the Philippines (-US$30 mil).

The top three stocks with the highest net money inflow from foreign investors last week were Tenaga Nasional Bhd (RM79.7 mil), Boustead Plantations (RM74.1 mil) and UMW Holdings (RM41.0 mil). – Aug 28, 2023

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