Market sees net foreign outflows despite vaccine rollout

KUALA LUMPUR: The market saw net foreign outflow almost every day of the past week, analysts observe, even with the rollout of the Pfizer-BioNTech Covid19 vaccine in Malaysia.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) recalled that foreign investor was net seller as the week ended on February 26 with outflow to the tune of RM477.43 million.

“As market reopened on Monday last week, foreign investors sold RM225.46 million net of local equities, with retailers and local institutions as net buyer to the tune of RM194.06 million and RM31.4 million respectively,” MIDF Research said.

“Even with the rollout of the Pfizer-BioNTech Covid19 vaccine in Malaysia, last week, the market saw net foreign outflow every day except on Thursday.

“The inflow was insufficient to reverse the negative momentum. Largest foreign outflow was recorded on Monday at RM225.46 million and the smallest outflow was on Friday at only RM80.11 million.”

According to MIDF Research, it was the opposite for retailers which were net buyers every day last week.

The research arm highlighted that the largest net buying was recorded on Wednesday at RM274.05 million and smallest net purchase was on Thursday at RM90.88 million.

“Meanwhile, local institutions were net sellers every day of the week, except on Monday. The mixed ending was recorded a er three weeks pa ern of net selling this year.

“Cumulative weekly outflow was to the tune of RM461.26 million.”

It further highlighted that the biggest outflow was on Thursday at RM235.35 million of last week trading period and smallest outflow was on Tuesday at RM29.31 million.

“Since the beginning of 2021, cumulatively, retailers are the only net buyers of our equity market to the tune of RM3.75 billion.

“Local institutions and foreign investors are net sellers to the tune of RM2.05 billion and RM0.42 billion respectively.”

In comparison to another three South East Asian markets that MIDF Research tracked last week; Indonesia was the only country that recorded net inflow last week.

“In terms of participation, the retail investors, foreign investors and local institutions recorded a weekly increase of 0.43 per cent, 8.42 per cent and 48.83 per cent in average daily trade value (ADTV) respectively.”

Overall, Tenaga Nasional Bhd registered the highest net money inflow of RM2.74 million last week, followed by Hartalega Holdings Bhd saw the second highest net money inflow of RM1.72 million.

Cahya Mata Sarawak Bhd saw the third highest net money inflow of RM1.61 million.

On outflows, Top Glove Corporation Bhd saw the largest net money outflow of RM9.65 million last week.

Telekom Malaysia Bhd recorded the third largest net money outflow RM6 million during the week under review, while Genting Bhd registered the fourth largest net money outflow of RM5.25 million.