Selling streak on Bursa by foreign funds stretches to 2nd week with RM66m in net outflow

FOREIGN investors continued to net sell equities on Bursa Malaysia for the second successive week with an outflow amounting to -RM66.3 mil last week which was -28.8% lower than the week before.

This was due to the net selling effect on Wednesday (Jan 17) and Thursday (Jan 18). However, net buying days outpaced net selling by 3 to 2, according to MIDF Research.

“On a day by day, they net sold -RM39.0 mil on Wednesday (Jan 17) and –RM190.0 mil on Thursday (Jan 18) while they net bought RM15.8 mil on Monday (Jan 15), RM93.7 mil on Tuesday (Jan 16) and RM53.3 mil on Friday (Jan 19),” the research house pointed out in its weekly fund flow report.

The top three sectors with the highest net foreign inflows were utilities (RM135.1 mil), construction (RM114.6 mil), and property (RM51.2 mil while the top three sectors with the highest net foreign outflows were financial services (-RM129.2 mil), consumer products & services (-RM64.8 mil) and industrial products & services (-RM61.8 mil).

Local institutions continued to net buy for the second consecutive week at an amount of RM214.7 mil which was more than double the amount recorded the week prior.

They net bought RM36.7 mil on Monday (Jan 15), RM38.4 mil on Wednesday (Jan 17) and RM222.1 mil on Thursday (Jan 18) and net sold -RM67.3 mil on Tuesday (Jan 16) and -M15.2 mil on Friday (Jan 19).

Local retailers net sold domestic equities for the third consecutive week amounting to -RM148.4 mil. They net sold every day of the week except on Wednesday (Jan 17) when they net bought RM700,000.

In terms of participation, there was an increase in average daily trading volume (ADTV) among foreign investors by +1.9% while local retail and local institutional investors saw declines of -4.6% and -4.0% respectively.

In comparison with another four Southeast Asian markets tracked by MIDF Research, Vietnam posted the highest net foreign inflow at US$23.8 mil followed by Indonesia at US$15.6 mil last week.

Foreign investors continued to net sell equities in Thailand for the third consecutive week at -US$307.4 mil – the highest net selling amount seen since the week ended May 26, 2023 – while foreign investors net sold -US$8.9 mil in the Philippines which ended three straight weeks of net inflows.

The top three stocks with the highest net money inflow from foreign investors last week were YTL Power International Bhd (RM160.2 mil), Gamuda Bhd (RM94.2 mil) and Genting Plantations Bhd (RM47.9 mil). – Jan 22, 2024

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