KUALA LUMPUR, Nov 8 — Foreign funds’ buying of local equities extended for the fifth straight week with marginal net inflows of RM67.94 million on a short trading week following the Deepavali holiday on Thursday against RM1.44 million in the week before, MIDF Research said.
In its Strategy Report released today, the research house said as the market reopened last Monday, local institutions and retailers were net sellers and net buyers amounted to -RM329.7 million and RM314.30 million, respectively.
Meanwhile, foreign investors were net buyers to the tune of RM14.97 million despite sentiment turning negative following the announcement of the one-off “Cukai Makmur”.
“It seems that foreign investors were unperturbed by the announcement and continued to be net buyers of the local market,” said MIDF Research, adding that foreign investors were net buyers for the majority of the week.
The largest foreign inflow was recorded on Friday with the largest outflow on Wednesday to the tune of RM87.07 million and -RM94.20 million, respectively.
“Retailers were net buyers every day for the week. The largest net buying by the retailers was recorded on Monday and the smallest net buying was on Tuesday to the tune of RM314.30 million and RM32.22 million, respectively.
“For the week, retailers net bought RM469.34 million worth of equities on Bursa Malaysia,” it said.
Meanwhile, local institutions recorded cumulative weekly net selling of -RM536.82 million.
Local institutions were net sellers for three of the four days trading week with the largest net selling on Monday amounting to RM329.70 million, while the smallest net outflow was on Tuesday amounted to -RM92.06 million.
Since the beginning of 2021, MIDF Research said cumulatively, retailers have been the only net buyers of the local equity market to the tune of RM11.17 billion.
Local institutions and foreign investors were net sellers of RM9.06 billion and RM2.11 billion of equities, respectively.
In terms of participation, the retail investors, local institutions, and foreign investors recorded a weekly movement of 22.04 percent, 10.17 percent, and 11.25 percent, respectively, in average daily trade value (ADTV).
Meanwhile, in Asia, foreign investors became net sellers last week after only one week prior of net buying, it said.
Based on the provisional aggregate data for the seven Asian exchanges that it tracked, net outflow from investors classified as ‘foreign’ was at a tune of about US$2.59 billion worth of equities.
This was primarily driven by outflows out of India and South Korea.
“Cumulatively, the markets saw the largest net selling on Friday which amounted to -US$1.13 billion.
“The net outflow was driven primarily by Korea (-US$246.9 million net outflow) and Taiwan (-US$323.7 million net outflow),” MIDF Research said.