Foreign funds continue to leave domestic equities

KUALA LUMPUR: Foreign funds continued to leave the Malaysian equity market with a total of RM556.9 million being net sold last week, 64 per cent higher than the amount net sold during the week ended March 3, 2023, said MIDF Research.

According to the research firm, every trading day was a net selling day by foreigners.

“The highest was on Monday with net selling amounting to RM183.1 million and eventually moderating to RM58.2 million on Thursday,” it said in its weekly fund flow report.

However, MIDF Research said it picked up pace again on Friday where the net outflow amounted to RM140.1 million.

Year to date, foreign investors had net sold RM1.24 billion worth of domestic equities.

“Sectors that saw net foreign inflows were construction (RM67.9 million), technology (RM13.2 million) as well as transportation and logistics (RM7.8 million), while the sectors that saw net foreign outflows were financial services (-RM359.5 million), industrial products and services (-RM90.3 million) and consumer products and services (-RM63.5 million),” it said.

Meanwhile, it said the local institutions had net bought domestic equities for the second consecutive week to the tune of RM461.3 million, about 56 per cent higher than the amount they had net bought the last two weeks.

“Every trading day last week was a net buying day by the local institutions, with the heaviest inflow recorded on Monday at RM161.1 million,” it said.

Year to date, the research firm said local institutions had net bought RM1.20 billion worth of domestic equities.

“Local retailers continued to be net buyers for the third consecutive week at RM95.6 million and every trading day was a net buying day by them, except for Tuesday with a net outflow of RM4.4 million,” it said.

Year to date, MIDF Research said local retailers were net buyers at RM44.5 million.

In terms of participation, it added that there was a decrease in average daily trading volume among local retailers (-3.5 per cent), local institutions (-14.7 per cent) and foreign investors (-33.1 per cent). — Bernama