THE expectation of a positive foreign inflow on the back of the expansionary Budget 2021 failed to materialise as the selling momentum at Bursa Malaysia outweighed the net inflow, resulting in foreign investors emerging net sellers with RM246.32 mil of fund outflow for the week of Nov 9-13.
This is despite foreign investors having bought RM3.53 mil net of local equities as the market reopened on Monday (Nov 9) with retailers and local institutions as net buyers and net sellers at RM39.52 mil and -RM43.05 mil respectively, according to MIDF Research.
“However, this was reversed mid-week as the largest outflow of the week on Tuesday (Nov 10) set the tone of the cumulative flow at -RM332.97 mil and continues on Wednesday (Nov 11) at -RM7.49 mil,” noted the research house in its weekly fund flow report.
“Meanwhile, the largest inflow was on Thursday (Nov 12) at RM87.25 mil.”
Thus far in 2020, foreign investors’ net selling has reached RM23.13 bil worth of equities on the local bourse.
In comparison to another three Southeast Asian markets tracked by MIDF Research last week; Thailand recorded the most foreign net inflow (at US$1.02 bil), followed by Indonesia (US$316.42 mil) and the Philippines (US$65.85 mil), while Malaysia experienced the biggest outflow at -US$59.83 mil.
In terms of retail participation, last week saw retailers as net buyers with RM129.08 mil worth of equities, while local institutions net bought RM117.24 mil during the same period.
“Retailers as net buyers on Bursa continued its streak to fifth week since early November with a rebound from two weeks ago on more cautionary behaviour,” observed MIDF Research.
“We may expect retailers buying momentum to continue next week on the tailwind of positive development of vaccines front.”
Thus far in 2020, net buying from retailers amounted to RM11.82 bil while institutions bought to the tune of RM10.94 bil.
In terms of participation, retail investors recorded a weekly increase of 49.17% in average daily trade value (ADTV) while foreign investors experienced an ADTV increase of 83.68% and local institution an ADTV of 61.11%.
The top three stocks in terms of net money inflow last week were Pubic Bank Bhd at RM5.38 mil followed by Bursa Malaysia Bhd (RM4.85 mil) and Carlsberg Brewery Malaysia Bhd (RM2.92 mil). – Nov 16, 2020
