Foreign investors net sellers on Bursa despite Budget 2021
KUCHING: For the week ended on November 13, foreign investors were net sellers amounting to RM246.32 million, analysts observed in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), the expectation of a positive foreign inflow on the back of expansionary budget did not materialise as the selling momentum on Tuesday outweighed the net inflow on Thursday and Friday.
“As market reopened on Monday last week, foreign investors bought RM3.53 million net of local equities, with retailers and local institutions as net buyers and net sellers at RM39.52 million and RM43.05 million respectively. However, this was reversed mid-week, as the largest outflow of the week on Tuesday set the tone of the cumulative flow at RM332.97 million and continues on Wednesday at RM7.49 million. Meanwhile, the largest inflow was on Thursday at RM87.25 million,” MIDF Research said.
MIDF Research highlighted that so far in 2020, foreign investors net selling has reached RM23.13 billion worth of equities on Bursa.
In comparison to another three South East Asian markets that the research arm tracked last week; Thailand recorded the most foreign net inflow while
Malaysia experienced the biggest outflow compare to the others.
“In terms of retail participation, last week saw retailer as net buyer with RM129.08 million worth of equities last week, while local institutions net bought RM117.24 million during the same period.
“Retailers as net buyers on Bursa continued its streak to fifth week since early November with a rebound from two weeks ago on more cautionary behavior. We may expect retailers buying momentum to continue next week on the tailwind of positive development of vaccines front.”
MIDF Research noted that net buying amounted to RM11.82 billion came from retailers thus far in 2020, while institution bought to the tune of RM10.94 billion.
It further noted that in terms of participation, the retail investors recorded a weekly increase of 49.17 per cent in average daily trade value (ADTV) while the foreign investor experienced increase of ADTV of 83.68 per cent and local institution at ADTV of 61.11 per cent.
Overall, Public Bank Bhd registered the highest net money inflow of RM5.38 million last
week, followed by Bursa Malaysia Bhd with the second highest net money inflow of RM4.85 million.
Carlsberg Brewery Malaysia Bhd saw the third highest net money inflow of RM2.92 million.
On outflows, Inari Amertron Bhd saw the largest net money outflow of RM5.58 million last week.
Kossan Rubber Industries Bhd recorded the second largest net money outflow RM5.31 million during the week under review while Malaysia Airports Holdings Bhd registered the third largest net money outflow of RM4.88 million in the review week.