Foreign investors net selling reaches RM24.8 billion worth of equities on Bursa

KUALA LUMPUR: Foreign investors’ net selling has so far in 2020, reached RM24.8 billion worth of equities on Bursa Malaysia, analysts observe in the latest fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), for the week ended on December 11, foreign investor continued to be net seller for the week amounting to RM574.5 million.

“As market reopened on Monday last week, foreign investors sold RM157.6 million net of local equities, with retailers and local institutions as net buyers and net sellers to the tune of RM208.5 million and RM50.9 million respectively,” MIDF Research said.

“For last week, retailers were active buyers every day of the week. The largest net inflow was on Wednesday and smallest on Thursday with net inflow to the tune of RM41.5 million.

“The biggest inflow stood at RM267.9 million. December saw retailers as ardent net buyers. So far, there was only one day in the month where retailers were net sellers for Bursa.”

MIDF Research gathered that it was almost opposite for local institutions.

The research arm noted that the market saw local institutions as net sellers every day except on Thursday.

It further noted that the largest net selling was recorded on Wednesday at RM88.86 million and the only buying was on Thursday at RM119.2 million.

“As 2020 is inching closer to the end, to recap, retailers and local institutions have been net buyers for Bursa.”

“Retailers are net buyers to the tune of RM13.14 billion, bigger than local institutions at RM11.16 billion.

“So far in 2020, foreign investors net selling has reached RM24.8 billion worth of equities on Bursa.”

In comparison to another three Southeast Asian markets that MIDF Research tracked last week; Malaysia recorded the most foreign net outflow while Thailand experienced the smallest inflow compare to the others.

“In terms of participation, the retail investors recorded a weekly increase of 11.26 per cent in average daily trade value (ADTV) while the foreign investor experienced increase of ADTV of 7.21 per cent and local institution at ADTV of -36.12 per cent.”

Overall, Serba Dinamik Holdings Bhd registered the highest net money inflow of RM14.04 million last week, followed by Petronas Chemicals Group Bhd with the second highest net money inflow of RM2.74 million.

Digi.Com Bhd saw the third highest net money inflow of RM2.59 million.

On outflows, Public Bank Bhd saw the largest net money outflow of RM15.83 million last week.

Top Glove Corporation Bhd recorded the second largest net money outflow RM15.01 million during the week under review while Hartalega Holdings Bhd registered the third largest net money outflow of RM6.79 million in the review week.