ALTHOUGH the pace of stock disposal by foreign funds on Bursa Malaysia dropped substantially last week, net selling by foreign investors nevertheless entered its fifth week in a row last week.
Based on data from Bursa Malaysia, foreign investors sold a net -RM38.16 mil of local equities last week from -RM348.36 mil net in the preceding week.
“As the market re-opened last Monday (Dec 20), local institutions and retailers were net buyers amounting to RM17.58 mil and RM31.17 mil respectively while foreign investors were net sellers to the tune of -RM48.75 mil,” observed MIDF Research in its weekly fund flow report.
Foreign investors were net sellers for three sessions during the week except on Wednesday (Dec 22) and Thursday (Dec 23). Their largest outflow was recorded on Tuesday (Dec 21) which came in at -RM124.28 mil.
Retailers, too, were also net buyers for three sessions of the week except on Wednesday (Dec 22) and Thursday (Dec 23). Their largest net buying by was recorded on Tuesday (Dec 21) at RM48.72 mil.
However, this was not enough to propel the market to a net bought position despite net buying on Monday, Tuesday and Friday.
For the week, retailers net sold -RM4.19 mil worth of equities in Bursa Malaysia. To note, this is the first week retailers recorded net selling after nine consecutive weeks of inflow.
Meanwhile, local institutions recorded cumulative weekly net buying to the tune of RM42.36 mil. They were net buyers for majority of the week except on Wednesday (Dec 22) and Thursday (Dec 23). Their largest net buying was on Tuesday (Dec 21) to the tune of RM75.57 mil.
Since the beginning of 2021, retailers have cumulatively been the only net buyers on Bursa Malaysia amounting to RM12.44 bil. Both local institutions and foreign investors were net sellers to the tune of -RM9.27 bil and -RM3.17 bil respectively.
In terms of participation, retail investors, local institutions and the foreign investors recorded a weekly movement of -18.98%, -24.17% and -48.32% respectively in terms of average daily trade value (ADTV).
In comparison with another three Southeast Asian markets tracked by MIDF Research last week, only Thailand recorded an inflow by foreign investors with US$135.26 mil while the Philippines, Malaysia and Indonesia posted net outflow of -US$10.60 mil, -US$9 mil and -US$860,000 respectively.
The top three stocks with the highest net money inflow last week were Petronas Chemicals Group Bhd (RM5.23 mil), MISC Bhd (RM2.8 mil) and Hong Leong Bank Bhd (RM2.76 mil). – Dec 27, 2021
