KUALA LUMPUR, Sept 20 — Foreign investors remained net buyers for the week ended on Sept 17, 2021, with net inflows amounting to RM125.97 million, marking the sixth consecutive inflow week of net buying by foreign investors.
MIDF Research said foreign investors were net buyers for every day of the week except on Friday, with the largest foreign inflow recorded on Wednesday at RM76.96 million.
“The lowest inflow was recorded on Monday to the tune of RM58.39 million, meanwhile, net selling by foreign investors on Friday amounted to RM72.65 million,” it said in its weekly fund flow report today.
It also said that when the market reopened last Monday, foreign investors were net buyers amounting to RM58.39 million.
“Retailers followed with net buying of RM63.50 million, while local institutions were net sellers to the tune of RM121.89 million,” it said.
However, the amount of net buying by foreign investors was lower compared to RM433.16 million recorded in the previous week.
According to Bank Islam chief economist Dr. Mohd Afzanizam Abdul Rashid, a few factors may have contributed to the lower purchases, including the shorter trading week as the market was closed on Thursday for the Malaysia Day celebration.
He noted that there were also concerns regarding the banking sector following the Finance Ministry’s move to instruct banks to work on the exemption of accrued interest payments for bank loan moratorium recipients, involving those from the bottom 50 percent of the population.
“Market participants are waiting for more details, which may have created some uncertainties on the banks’ earnings prospects, “ he told Bernama.
MIDF Research noted that retailers were also net buyers every day last week, with the largest net buying recorded on Friday and the smallest net buying on Wednesday at RM81.57 million and RM6.97 million, respectively.
“Cumulatively, for the week, retailers net bought RM211.55 million worth of equities in Bursa Malaysia, while the local institutions recorded cumulative weekly net selling to the tune of RM337.92 million,” it said.
The research house said local institutions were net sellers for every day of the week, with the largest net selling on Tuesday at RM123.18 million, while the lowest was on Friday at RM8.92 million.
In terms of participation, it said retail investors, local institutions, and foreign investors recorded a weekly movement of 4.67 percent, – 6.08 percent, and 45.97 percent, respectively, in average daily trade value (ADTV).