KUALA LUMPUR (June 15): Bursa Malaysia has said its listed companies' total market capitalisation slipped to RM1.77 trillion at end of May 2022, from RM1.83 trillion a month earlier, as factors including inflation and interest rate hikes dented sentiment on listed firms' share prices.

"Total market cap, as at the end of May, slipped to RM1.77 trillion (RM1,774 billion) amid negative sentiment over inflation, interest rate hikes and disruption in the global supply chain.

"In May, total ADV (average daily traded value) escalated to RM2.39 billion (March: RM2.14 billion), led mainly by foreign ADV which rose by 72% month-on-month. Foreign inflow tapered to +RM77 million in May as compared to +RM825 million in April," Bursa's research arm Bursa Digital Research said in a note on Tuesday (June 14).

According to Bursa Malaysia, foreign funds emerged as net buyers in plantations (+RM368 million), utilities (+RM230 million), and industrial (+RM202 million) sectors. At the same time, they were net sellers in transport and logistics (-RM411 million), financial services (-RM260 million), and telecoms and media sectors (-RM135 million) in May.

In contrast, local institutions were net buyers in transport and logistics (+RM376 million), financial services (+RM140 million), and telecoms and media sectors (+RM59 million), while they net sold industrial (-RM373 million), plantation (-RM327 million), and healthcare (-RM158 million) sectors.

Local retail investors, meanwhile, were net buyers in industrial (+RM169 million), healthcare (+RM117 million) and technology (+RM93 million) sectors, while they sold utilities (-RM60 million), construction (-RM16 million), and REITs (-RM10 million).

The local bourse said the financial services sector saw heavy selling pressure from foreign investors in the first week of May, but the scenario reversed to significant net buying in the last week of the month.

"Local institutions added RM140 million, while local retailers added RM71 million in May," it added.

On the plantation sector, Bursa said foreign investors further increased their stakes in plantation stocks with inflow of RM368 million (April: RM246 million), but local institutions offloaded RM327 million.

Foreign outflow in the healthcare sector narrowed to RM20 million (April: -RM131 million) while local institutions turned net sellers with outflow of RM158 million, although local retailers net bought RM117 million of healthcare stocks in May, Bursa said.

It also noted that May marked the 11th consecutive month that the industrial sector saw foreign inflow since July 2021, as foreign investors further strengthened their position with RM202 million in May, versus April's RM240 million.

In particular, it noted that the top five stocks that saw net fund flow by foreign investors were Mr DIY Group (M) Bhd, Kuala Lumpur Kepong Bhd, Tenaga Nasional Bhd, Malayan Banking Bhd and Press Metal Aluminium Holdings Bhd.

The top five selections for local institutions, on the other hand, were Westports Holdings Bhd, RHB Bank Bhd, Malaysia Airports Holdings Bhd, Public Bank Bhd and Genting Bhd.

As for local retailers, they preferred Top Glove Corp Bhd, Inari Amertron Bhd, Fraser & Neave Holdings Bhd, Dialog Group Bhd, and RHB Bank.