Foreign funds step up a gear with second successive week of net buying last week

THE net buying by foreign investors in Bursa Malaysia extends into its second consecutive week though at a much-moderated pace of RM179.0 mil as compared to RM570.9 mil the week before.

It was nevertheless a shortened trading week due to the Awal Muharram public holiday on Wednesday (July 19).

“They net bought RM56.3 mil on Monday (July 17), RM71.0 mil on Thursday (July 20) and RM61.7 mil on Friday (July 21) but net sold -RM10.1 mil on Tuesday (July 18),” MIDF Research pointed out in its weekly fund flow report,

The top three sectors which saw net inflows by foreign investors last week were utilities (RM107.0 mil), technology (RM73.5 mil) and construction (RM68.4 mil) while the bottom three sectors with net outflows were consumer products and services (-RM103.1 mil), financial services (-RM35.8 mil) and REITs (-RM11.2 mil).

Year-to-date (YTD), foreign investors have net sold -RM3.70 bil.

On the contrary, local institutions maintained their net selling stance for the second consecutive week with a net outflow of -RM91.3 mil.

They net bought RM9.8 mil of equities on Monday (July 17) and RM2.8 mil on Tuesday (July 18) before net selling -RM49.0 mil on Thursday (July 20) and -RM54.9 mil on Friday (July 21). YTD, local institutions have net bought RM3.53 bil.

Like the local institutions, local retailers also net sold for the second consecutive week at -RM87.7 mil. They only net bought RM7.2 mil on Tuesday (July 18) but net sold -RM66.1 mil on Monday (July 17), -RM22.0 mil on Thursday (July 20) and -RM6.8 mil on Friday (July 21). YTD, they have net bought RM165.8 mil worth of equities on Bursa Malaysia.

In terms of participation, there was a decrease in average daily trading volume (ADTV) among foreign investors by -2.9% while retail investors and local institutions saw increases of 6.8% and 17.4% respectively.

In comparison with another four Southeast Asian markets tracked by MIDF Research last week, Indonesia posted the highest net foreign fund inflow with US$140.6 mil followed by Vietnam (US48.8 mil), Malaysia (US$39.3 mil) and the Philippines (US$18.0 mil) while Thailand posted a net outflow of -US$500,000.

The top three stocks with the highest net money inflow from foreign investors last week were Tenaga Nasional Bhd (RM73.6 mil), Inari Amerton Bhd (RM64.9 mil) and Kuala Lumpur Kepong Bhd (RM41.6 mil) – July 24, 2023

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