Year-to-date net foreign fund flow into Bursa is gradually shrinking

BURSA Malaysia continued to experience outflow from foreign funds for the sixth consecutive week. They net sold -RM479.7 mil worth of equities last week or 42.4% more than the -RM336.9 mil sold in the previous week.

During the shortened trading week, foreign investors were net sellers for every trading session with the heaviest outflows recorded on Thursday (Oct 13) at -RM153.7 mil and Tuesday (Oct 11) at -RM140.3 mil, according to MIDF Research.

Meanwhile, the outflows recorded on Wednesday (Oct 12) and Friday (Oct 14) were -RM86.4 mil and -RM99.3 mil respectively.

“In contrast, local institutions were net buyers during every trading session of last week,” observed the research house in its weekly fund flow report. “Cumulatively, local institutions net bought RM368.4 mil worth of equities last week.”

They started off the week by net buying RM81.2 mil worth of equities on Tuesday (Oct 11) and the amount moderated to RM44.2 mil on Wednesday (Oct 12) before rising to RM131.5 mil on Thursday (Oct 13) and slightly lower at RM111.5 mil on Friday (Oct 14).

Elsewhere, local retailers also turned net buyers last week with a total weekly inflow of RM111.3 mil. On Tuesday (Oct 11), retailers net bought RM59.1 mil worth of equities but that moderated to RM42.2 mil on Wednesday (Oct 12) and RM22.2 mil on Thursday (Oct 13).

Thereafter, retailers closed the week by having net sold -RM12.2 mil on Friday (Oct 14).

To date, international investors have been net buyers for 24 out of the 41 weeks of 2022 with a total net inflow of RM5.81 bil. Local institutions were net sellers for 29 out of 41 weeks with a total net outflow of -RM8.11 bil.

Local retailers have been net buyers for 27 out of 41 weeks of 2022. Year-to-date, they have net bought RM2.30 bil.

In terms of participation, there was an increase in average daily trade value (ADTV) across all investor classes at +0.34% for retail investors, +16.6% for institutional investors and +16.3% for foreign investors.

In comparison with another three Southeast Asian markets tracked by MIDF Research last week, all markets posted a net outflow of foreign funds with Thailand leading the pack with -US$125.91 mil followed by Malaysia (-US$102.33 mil), Indonesia (-US$79.38 mil) and the Philippines (-US$5.28 mil).

The top three stocks with the highest net money inflow last week were Petronas Chemicals Group Bhd (RM7.74 mil), Malayan Banking Bhd (Maybank) (RM2.38 mil) and Petronas Gas Bhd (RM2.16 mil). – Oct 17, 2022

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