Foreign investors come to Bursa’s support as institutions dump their holdings

FOREIGN investors were net buyers on Bursa Malaysia with an inflow of RM117.05 mil during last week’s four-day trading period which ended Feb 5.

As market reopened on Tuesday (Feb 2) last week, foreign investors mopped up RM179.11 mil net of local equities with retailers and local institutions as net sellers to the tune of -RM6.01 mil and -RM173.10 mil respectively.

Even with the weekly positive inflow, the market saw net foreign outflow every day of the week except on Tuesday (Feb 2). The only inflow was to the tune of RM179.11 mil, according to MIDF Research.

“Subsequent continuous selling was not able to negate Tuesday’s inflow,” the research house pointed out in its weekly fund flow report. “The largest foreign outflow was recorded on Friday (Feb 5) at -RM38.78 mil with the smallest outflow on Wednesday (Feb 3) at -RM4.90 mil.”

However, it was the opposite for retailers who were net buyers for every day of last week except on Tuesday (Feb 2).

Their largest net buying was recorded on Thursday (Feb 4) at RM105.81 mil while the smallest net purchase was on Wednesday (Feb 3) at RM49.52 mil.

Meanwhile, local institutions were net sellers every day of last week with cumulative weekly outflow to the tune of -RM339.17 mil.

The biggest outflow was on the opening day of last week (Feb 2) while the smallest outflow was on Friday (Feb 5) at -RM173.10 mil and -RM34.04 mil.

As a whole, retailers – on a cumulative basis since the beginning of 2021 – are the only net buyers in the local bourse to the tune of RM1.98 bil.

On the contrary, local institutions and foreign investors are net sellers to the tune of -RM1.26 bil and -RM720 mil respectively.

In comparison to another three Southeast Asian markets tracked by MIDF Research last week, Thailand and the Philippines recorded net outflow of US$299.74 mil and US$54.96 mil respectively.

However, both Indonesia and Malaysia posted a net inflow of US$287.41 mil and US$29 mil respectively.

In terms of participation, retail investors recorded a weekly decrease of -14.55% in average daily trade value (ADTV) while foreign investors and local institutions experienced declines in ADTV of -9.68% and -19.85% respectively.

The top three stocks with the highest net money inflow last week were Public Bank Bhd (RM6.11 mil) followed by Telekom Malaysia Bhd (RM5.15 mil) and Malayan Banking Bhd (RM3.35 mil). – Feb 8, 2021

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