Foreign investors turns net buyers again at Bursa

AFTER seven consecutive weeks of net selling, foreign investors have again turned net buyer in Bursa Malaysia for the week of Nov 2-6 with a net buy of RM115.14 mil.

This potentially marks a shift on sentiment post an expansionary budget that strives to rejuvenate the Malaysian economy, according to MIDF Research.

Although the week started with foreign investors sold RM104.42 mil net of local equities (on Nov 2), such outflow was reversed as the week draw to a close with net buying gaining momentum.

“The outcome of US presidential and senate election played a role influencing investors’ decisions,” MIDF Research noted in its weekly fund flow report. “The largest inflow was on Friday (Nov 6) at RM240.43 mil (the other net inflow was on Nov 5 at RM140.90 mil).”

Thus far in 2020, foreign investors net selling has reached RM22.88 bil worth of equities on the local bourse.

In comparison to another three Southeast Asian markets that were tracked by MIDF Research last week, Indonesia recorded the most foreign net inflow (at US$55.2 mil) while Thailand experienced the biggest outflow at US$179.19 mil and the Philippines with an outflow of US$10.14 mil.

In terms of retail participation, last week saw retailers as net buyer with RM26.7 mil worth of equities while local institutions net sold RM141.8 mil during the same period.

“Retailers as net buyers on Bursa continue its streak to fourth week since early November albeit moderate tapering as cautionary sentiment clouded the momentum due to the anticipation on Budget 2021 announcement last Friday,” observed MIDF Research.

“We may expect retailers’ buying momentum to continue next week, signalling positive affirmation on Malaysian fiscal directions for 2021.”

All-in, net buying from retailers in 2020 amounted to RM11.69 bil while institutions bought to the tune of RM10.82 bil.

In the list of top three net money inflow counters are Public Bank Bhd with RM10.60 mil (RM9.48 mil previously) followed by Malayan Banking Bhd at RM8.25 mil (RM8.68 mil previously) and Genting Bhd with RM5.25 mil (RM5.02 mil previously). – Nov 9, 2020

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