Friday 29 Mar 2024
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KUALA LUMPUR (May 17): Foreign buying of Malaysian equities rebounded last week to RM56.9 million from an outflow of RM365.71 million the prior week.

In its weekly fund flow report on Tuesday (May 17), the MIDF Research team said local retailers remained net buyers for the fifth consecutive week at RM234.8 million, while local institutions turned net sellers after a week of net buying with a net selling position of RM291.8 million last week.

“To date, international funds have been net buyers for 15 out of the 19 weeks of 2022, with a total net inflow of RM6.98 billion.

“They were net sellers last Wednesday and Thursday at RM2.08 million and RM145.2 million respectively,” it said.

MIDF said local institutions were net sellers on all the trading days of the week, except last Thursday when they were net buyers to the tune of RM41.38 million.

It said the highest net selling was recorded last Tuesday at RM200.67 million, and the smallest net selling last Wednesday at RM40.44 million.

“They have been net sellers for 16 out of 19 weeks this year. To date, they have sold RM8.1 billion of equities,” it said.

The research house said local retailers were net buyers on all trading days of the week with the highest net buying last Thursday at RM103.83 million, and the smallest net buying last Tuesday at RM21.34 million.

MIDF said in terms of participation, foreign investors saw a decrease in the average daily trade value by 24.76%.

It said local retailers saw a decline of 6.9%, while local institutions saw an increase of 9.49%.

Commenting on the international scene, MIDF said global markets closed lower last week and remained volatile as investors grew anxious about the possibility of an impending recession.

It said that on the domestic front, Bank Negara Malaysia unexpectedly turned on the overnight policy rate normalisation button by raising 25 basis points.

Meanwhile, it said that in the US, inflationary pressure remained high despite recording a lower rate in April 2022 compared to the previous month.

“Energy inflation continued to expand at strong pace at 30.3% year-on-year (y-o-y) (March 2022: +32% y-o-y), particularly fuel oil at 80.5% y-o-y (March 2022: +70.1% y-o-y) and gasoline at 43.6% y-o-y (March 2022: +48% y-o-y).

“Food inflation hit a 41-year high at 9.4% y-o-y. On the flip side, core inflation stayed above the US Federal Reserve’s target rate of 2% y-o-y after registering 6.2% y-o-y,” it said.

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