Foreign investors continue to be downbeat Malaysian equities

FOREIGN investors have remained net sellers on the local bourse for three consecutive weeks following an outflow to the tune of -RM477.43 mil for the week ended Feb 22.

As market reopened on Monday (Feb 22) last week, they sold -RM225.46 mil net of local equities with retailers and local institutions being net buyers to the tune of RM194.06 mil and RM31.40 mil respectively.

“Even with the roll-out of the Pfizer-BioNTech COVID-19 vaccine in Malaysia, last week, the market saw net foreign outflow every day except on Thursday (Feb 25),” MIDF Research pointed out in its weekly fund flow report.

“The inflow was insufficient to reverse the negative momentum. The largest foreign outflow was recorded on Monday (Feb 22) at -RM225.46 mil while the smallest outflow was on Friday (Feb 26) at only -RM80.11 mil.”

On the contrary, retailers were net buyers every day last week. Their largest net buying was recorded on Wednesday (Feb 24) at RM274.05 mil while their smallest net purchase was on Thursday (Feb 25) at RM90.88 mil.

Meanwhile, local institutions were net sellers every day of the week except Monday (Feb 22). Their cumulative weekly outflow was to the tune of -RM461.26 mil.

The biggest outflow was on Thursday (Feb 25) at -RM235.35 mil while their smallest outflow was on Tuesday (Feb 23) at -RM29.31 mil.

Since the beginning of 2021, retailers are cumulatively the only net buyers in Bursa Malaysia to the tune of RM3.75 bil with local institutions and foreign investors being net sellers to the tune of -RM2.05 bil and -RM420 mil respectively.

In comparison to another three Southeast Asian markets tracked by MIDF Research last week, Indonesia was the only country that recorded net inflow last week with US$80.24 mil while Thailand topped the countries which recorded outflow with US$340.84 mil followed by Malaysia (-US$118.03 mil) and the Philippines (US$86.94 mil).

In terms of participation, retail investors, foreign investors and local institutions recorded a weekly increase of +0.43%, +8.42% and +48.83% in average daily trade value (ADTV) respectively.

The top three stocks with the highest net money inflow last week were Tenaga Nasional Bhd at RM2.74 mil followed by Hartalega Holdings Bhd (RM1.72 mil) and Cahya Mata Sarawak Bhd (RM1.61 mil). – March 1, 2021

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