Foreign investors net buyers as vaccine programme kicks off, MCO lifted
KUALA LUMPUR: Foreign investors were net buyers last week, analysts gather, echoing the positive sentiment emanating from the roll-out of the Covid-19 vaccine programme in Malaysia and lifted Movement Control Order (MCO) in Kuala Lumpur, Selangor, Penang and Johor.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) recapped that foreign investor turned net buyer of Malaysian equities for the week ended on March 5, which saw inflow amounting to RM285.83 million.
“As the market reopened last Monday, foreign investors bought RM50.3 million net of local equities, with retailers and local institutions as net buyers and net sellers to the tune of RM121.06 million and RM171.36 million respectively,” MIDF Research said.
“Foreign investors were net buyers every day except Thursday during last week, echoing the positive sentiment emanating from the roll-out of the Covid-19 vaccine programme in Malaysia and lifted MCO in Kuala Lumpur, Selangor, Penang and Johor which came into effect on March 5, 2021.”
According to MIDF Research, on a year to date basis, foreign net selling this year have came in lower when compared against the same period last year.
The research arm highlighted that net selling by foreigners was RM1.42 billion for 2021 thus far, as compared to RM3.3 billion over the same period in 2020.
“As for the retailers, they were net buyers every day last week. Largest net buying was recorded on Monday at RM121.06 million and smallest net purchase was on Tuesday at RM22.45 million.
“Meanwhile, local institutions were net sellers every day of the week, except on Thursday. The mixed ending was recorded after four weeks pattern of net selling this year.
“Cumulative weekly outflow was to the tune of RM590.4 million. The biggest net selling was on Tuesday at RM262.62 million while the smallest net selling was on Friday at RM83.34 million.”
MIDF Research recalled that since the beginning of 2021, cumulatively, retailers have been the only net buyers of Malaysia’s equity market to the tune of RM4.05 billion.
It also noted that local institutions and foreign investors were net sellers to the tune of RM2.64 billion and RM1.42 billion, respectively.
“In terms of participation, the retail investors, foreign investors and local institutions recorded a weekly decrease of 21.51 per cent, 30.48 per cent and 22.37 per cent in average daily trade value (ADTV) respectively.”
Overall, MY EG Services Bhd registered the highest net money inflow of RM3.6 million last week, followed by Tenaga Nasional Bhd with the second highest net money inflow of RM3.42 million.
Hong Leong Bank Bhd saw the third highest net money inflow of RM1.95 million.
On outflows, Inari Amertron Bhd saw the largest net money outflow of RM7.19 million last week.
Hartalega Holdings Bhd recorded the second largest net money outflow RM5.58 million during the week under review.
CIMB Group Holdings Bhd registered the third largest net money outflow of RM5.07 million in the review week.