KUALA LUMPUR (Dec 5): Foreign investors remained net sellers for the third consecutive week at a rate of RM301.2 million last week, which was 3.7 times higher than RM81.9 million in the previous week.

In its weekly fund flow report on Monday (Dec 5), the MIDF Research team said foreign investors took profit after a meteoric rise of the barometer FBM KLCI in the week prior when Datuk Seri Anwar Ibrahim was named as the prime minister, net selling every day of the week except last Thursday, when they net bought RM77.7 million.

MIDF said the heaviest net selling stood at RM292.8 million last Friday, as uncertainty loomed over a delay in the Cabinet line-up announcement, which was eventually revealed that night.

“Foreign investors also net sold RM10.7 million last Tuesday, and RM75.4 million last Wednesday.

“The top three sectors which saw net inflows by foreign investors last week were technology at RM72.8 million, utilities at RM40.3 million, and construction at RM39.4 million,” it said.

Meanwhile, the research house said the top three sectors with net outflows were financial services at RM153.5 million, healthcare at RM128.1 million, and industrial products and services at RM101.5 million.

MIDF said local institutions came on strong to pick up on the buying opportunity amid a more stabilised political arena, with the formation of a unity Government.

It said they net bought RM431.2 million last week, the highest since the week ended Sept 30, 2022 at RM669.2 million.

It said they started the week net selling RM10.7 million, before turning net buyers for the remaining days, and recording the strongest net buying last Friday at RM301.5 million.

MIDF said local retailers turned net sellers for the week, reversing their net buying trend after two weeks, with net selling of RM130.1 million.

It said they net bought RM21.4 million last Tuesday, before turning net sellers last Wednesday to Friday.

MIDF said the highest net selling took place last Thursday at RM128.4 million.

It said international investors were net buyers for 26 out of 48 weeks of 2022, with a total net inflow of RM5.53 billion.

“Local institutions were net sellers for 32 out of 48 weeks, with a total net outflow of RM7.57 billion.

“Local retailers were net buyers for 30 out of 48 weeks. Year to date, they are net buyers at RM2.04 billion,” it said.

MIDF said in terms of participation, there was an increase in average daily trading volume among foreign investors (61.6%) and local institutions (7.6%), while retailers saw a decline of 10.5%.

Commenting on the international scenario, MIDF said major markets were buoyed by optimistic expectations of a China reopening and a pivot by the US Federal Reserve.

“Out of the 16 major indices tracked, 10 ended the week positively, led by the Hang Seng Index at 6.3%, CSI 300 at 2.5%, and TAIEX at 1.3%.

“Benchmark indices on Wall Street advanced, with the S&P 500 gaining 1.1%, the Dow adding 0.24%, and the Nasdaq rising 2.1%,” it said.