FOREIGN investors have been net sellers of domestic equities for the second consecutive week with a total net selling of -RM396.9 mil last week (they net sold -RM613.0 mil on the week of Oct 16-20).
Every trading day was a net selling day by this investor class with Wednesday (Oct 25) recorded the highest daily foreign outflow of -RM150.4 mil as foreign investors dumped stocks like Hong Leong Bank Bhd (-RM54.0 mil), Kuala Lumpur Kepong Bhd (-RM33.6 mil) and Gamuda Bhd (-RM22.4 mil), according to MIDF Research.
“Year-to-date (YTD), foreign investors have net sold -RM4.13 bil on Bursa Malaysia,” the research house pointed out in its weekly fund flow report.
“The top three sectors with the highest net foreign inflows were utilities (RM107.7 mil), technology (RM18.5 mil) and property (RM16.2 mil) while the top three sectors with the highest net foreign outflows were financial services (-RM181.9 mil), consumer products & services (-RM101.4 mil) and construction (-RM65.0 mil).
On the contrary, local institutions have maintained their trend of purchasing domestic equities for the fourth consecutive week with net purchase amounted of RM493.1 mil.
They favoured sectors such as financial services (RM236.0 mil), consumer products & services (RM76.4 mil) and construction (RM50.3 mil). YTD, local institutions have net bought RM4.88 bil of equities.
However, local retailers have persisted as net sellers of domestic equities for the third consecutive week with a net outflow of -RM96.2 mil. YTD, retailers have accumulated net sales amounting to -RM756.8 mil.
In terms of participation, there was a decrease in average daily trading volume (ADTV) among retail (-3.6%) and foreign (-26.1%) investors but an increase among institutional investors (+2.7%).
In comparison with another four Southeast Asian markets tracked by MIDF Research, Malaysia posted the highest net outflow among foreign investors during 4Q 2023 to-date with -US$456.0 mil followed by Indonesia (-US$387.4 mil), Thailand (-US$345.2 mil), the Philippines (-US$163.4 mil) and Vietnam (-US$119.6 mil).
The top three stocks with the highest net money inflow from foreign investors last week were YTL Power International Bhd (RM50.6 mil), YTL Corp Bhd (RM49.7 mil) and Malayan Banking Bhd (Maybank) (RM43.2 mil). – Oct 30, 2023
