Foreign funds take a breather after seven straight weeks of net buying

THE healthy trend of seven consecutive weeks of foreign fund inflow into Bursa Malaysia took a halt last week with a net outflow of -RM42.4 mil.

Foreign investors were net sellers from Monday (Sept 5) to Thursday (Sept 8) before turning net buyers on Friday (Sept 9), according to MIDF Research.

“The bulk of the foreign net outflows were seen on Tuesday (Sept 6) and Wednesday (Sept 7) at -RM42.18 mil and -RM45.72 mil respectively,” observed the research house in its weekly fund flow report.

“Foreigners also net sold -RM3.89 mil on Monday (Sept 5) and -RM2.6 mil on Thursday (Sept 8) before net buying RM51.9 mil on Friday (Sept 9).”

On the contrary, local institutions net bought RM91.29 mil last week after being net sellers for eight consecutive weeks. They were net buyers from Monday (Sept 5) to Thursday (Sept 8) with the bulk of their net buying happening on Tuesday (Sept 6) and Wednesday (Sept 7) at RM59.26 mil and M51.36 mil respectively.

“Their net buying on Monday (Sept 5) and Thursday (Sept 8) amounted to RM2.55 mil and RM3.51 mil respectively before they turned net sellers on Friday (Sept 9) at -RM25.39 mil,” noted MIDF Research.

Elsewhere, local retailers also turned net sellers last week at-RM48.81 mil after four weeks in a row of net buying. They started the week by net buying RM1.35 mil before turning net sellers for the rest of the week.

The heavier portion of their net selling was seen on Tuesday (Sept 6) and Friday (Sept 9) at -RM17.08 mil and -RM26.51 mil respectively while Wednesday (Sept 7) and Thursday (Sept 8) saw net selling at RM5.64 mil and RM910,000 respectively.

The top three sectors which saw net outflow by foreign investors last week were industrial products and services at -RM121.8 mil; plantation (-RM35.7 mil) and healthcare (-RM34.6 mil) while the top three sectors with net inflows were construction, telecommunication and utilities at RM69.2 mil, RM47.9 mil and RM25.1 mil respectively.

To date, international funds have been net buyers for 24 out of the 36 weeks of 2022 with a total net inflow of RM8.11 bil. Local institutions were net sellers for 28 out of 36 weeks with a total net outflow of -RM9.90 bil while local retailers have been net buyers for 23 out of 36 weeks of 2022. Year-to-date, they have been net bought RM1.79 bil.

In terms of participation, there was a decline in average daily trade value (ADTV) across the board, led by foreign investors at -41.5%, retailers (-13%) and local institutions (-8.26%).

In comparison with another three Southeast Asian markets tracked by MIDF Research last week, only Indonesia and the Philippines posted a net inflow by foreign funds at US$318.13 mil and US$20.42 mil respectively. Thailand recorded the biggest outflow at -US$142.14 mil followed by Malaysia at -US$9.43 mil.

The top three stocks with the highest net money inflow last week were Petronas Chemicals Group Bhd (RM9.59 mil), Hong Leong Bank Bhd (RM5.43 mil) and Petronas Gas Bhd (RM2.24 mil). – Sept 12, 2022

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