Foreign funds net sellers of M’sian equities last week
PETALING JAYA: Offshore investors emerged as net sellers last week on the local bourse as they sold RM86.8 million of local equities for the week ended Nov 27, 2020.
According to MIDF Research’s fund flow report, the week started with foreign funds with an inflow of RM169.5 million net of local equities as retailers and local institutions sold off RM150.9 and RM18.6 million respectively.
For the week, the retailer’s buying momentum started on Tuesday which saw RM134.4 million snapped up and Wednesday saw the smallest buying activity with RM2.9 million.
This momentum continued to the end of the week with a RM16.27 million net bought on Friday.
The research house reported that it was the opposite for local institutions which stood as net sellers every day except for Friday with the largest net selling reported on Monday, while Thursday saw the smallest sell off at RM11.59 million.
Local institutions ended the week with net buying of RM141.8 million.
“We posit that retailers buying appetite has shifted from mild profit taking behaviour last week,” it said in a report.
“In particular, there was jitteriness prior to the voting on Budget 2021. Last week, retailers stopped its buying streak on the 6th week after five weeks of buying momentum.”
Albeit a small recovery, MIDF Research pointed out that retailers are the only net buyers for the week to the tune of RM163.8 million.
Year-to-date, it said that foreign investor net selling has reached RM23.48b worth of equities on Bursa. Compared to the other three Southeast Asian markets tracked,
Thailand saw the most foreign net inflow while Malaysia experienced the only outflow compared to the others.
The research house highlighted that net buying amounted to RM11.98 billion came from retailers thus far in this year, while local institution bought to the tune of RM11.13 billion.
In terms of participation, the retail investors recorded a weekly decrease of 20.65% in average daily trade value (ADTV) while the foreign investor experienced decrease of ADTV of 17.03% and local institution at ADTV of -22.77%.