KUALA LUMPUR (Oct 18): Foreign investors turned net buyers last week, with a net inflow of RM924.77 million against RM293.36 million the week before, recording an average participation of 18.4% from 19.2% previously, MIDF Research said.
This was the second week of net buying by foreign investors after one week of inflow previously.
“As the market reopened last Monday, local institutions were net sellers amounting to RM154.74 million. Meanwhile, retailers and foreign investors were net buyers to the tune of RM23.3 million and RM131.43 million respectively,” the research house said in its weekly fund flow report.
Foreign investors were net buyers every day of the week. The largest foreign inflow was recorded last Friday and the smallest inflow last Thursday to the tune of RM303.22 million and RM79.99 million respectively.
Separately, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said it looked like foreign investors had been recording two consecutive weeks of net purchases.
“We believe the reopening of the economy following the uplift in interstate travel may have been one of the main contributing factors as it will result in more lively economic activities.
“The impact can be wide-ranging on various sectors, namely aviation, food and beverages, hotels, entertainment and retail outlets, as there will be higher spending among Malaysians, not to mention higher commodity prices would certainly improve sentiments towards the oil and gas and plantation sectors,” he said.
As for retailers, MIDF reported that they were net sellers for the majority of the days except last Monday and Tuesday.
The largest net selling by retailers was recorded last Friday and the largest net buying last Tuesday to the tune of -RM82.15 million and RM29.16 million respectively.
Cumulatively, for the week, retailers net sold RM78.64 million worth of equities on Bursa Malaysia.
Meanwhile, local institutions recorded cumulative weekly net selling of RM846.14 million.
Local institutions were net sellers every day of the week with the largest net selling of RM245.86 million last Wednesday and the smallest net outflow last Thursday at RM47.13 million.
Cumulatively, since the beginning of 2021, retailers were the only net buyers of the local equity market to the tune of RM10.32 billion.
Local institutions and foreign investors were net sellers of RM7.56 billion and RM2.77 billion respectively.
“However, it is worth noting that foreign investors’ net selling position continued to decline. It was -RM3.75 billion on a year-to-date basis as at the end of September 2021.
“In terms of participation, retail investors, local institutions and foreign investors recorded weekly movements of 8.66%, 11.17% and 4.97% respectively in average daily trade value,” MIDF said.
Malaysia recorded inflows of foreign investors last week, along with Thailand and Indonesia among the Southeast Asian countries.