Foreign investors net sellers amid rising cases, lockdowns
KUALA LUMPUR: Foreign investors were net sellers last week on Bursa Malaysia, amid rising cases and selective lockdowns announced for several states in Malaysia, including several major economic centres.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) recapped that foreign investor was net seller as the week ended on January 22 saw outflow amounting to RM288.13 million.
“As market reopened on Monday last week, foreign investors sold RM57.15 million net of local equities, with retailers and local institutions as net buyers to the tune of RM15.97 million and RM41.18 million respectively,” MIDF Research said.
“Foreign investors were net sellers every day during last week. This came amid rising cases and selective lockdowns announced for several states, including several major economic centres.
“Largest foreign outflow was recorded on Thursday at RM117.11 million at the smallest outflow was on Wednesday at only RM8.87 million.”
According to MIDF Research, it was the opposite for retailers as they were net buyers every day for last week.
The research arm gathered that the largest net buying was recorded on Thursday at RM172.95 million and smallest net purchase was on Friday at RM71.17 million.
“Similar to foreign investors behaviour, last week local institutions saw negative flow. Buying were recorded on Monday and Friday with small net inflow of below RM50 million each.
“Net selling activities were bigger, resulted to net selling to the tune of RM138.03 million. The biggest net outflow was on Tuesday with net selling of RM72.59 million.
“Since the beginning of 2021, cumulatively, retailers are the only net buyers of our equity market to the tune of RM1.16 billion.
“Local institutions and foreign investors are net sellers to the tune of RM862.97 million and RM299.09 million respectively.”
In comparison to another three South East Asian markets that MIDF Research tracked last week; Thailand and Indonesia recorded foreign net inflow whereas Philippines and Malaysia experienced net outflow.
In terms of participation, the retail investors recorded a weekly decrease of 9.49 per cent in average daily trade value (ADTV) while the foreign investors and local institutions experienced declines in ADTV of 23.16 per cent and 7.66 per cent respectively.
Overall, Public Bank Bhd registered the highest net money inflow of RM10.79 million last week, followed by Kuala Lumpur Kepong Bhd with the second highest net money inflow of RM6.15 million.
Telekom Malaysia Bhd saw the third highest net money inflow of RM4.61 million.
On outflows, CIMB Group Holdings Bhd saw the largest net money outflow of RM7.77 million last week.
Top Glove Corporation Bhd recorded the second largest net money outflow RM7.4 million during the week under review while Inari Amertron Bhd registered the third largest net money outflow of RM5.31 million in the review week.