Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 5): Foreign selling of local equities on Bursa Malaysia rose to RM1.43 billion in September from RM1.19 billion in August, according to MIDF Research.

In its weekly fund flow report today, the MIDF Research team said for the first week of October, foreign investors were net sellers to the tune of RM543.91 million.

The research house said if this trend continues, there could be a higher foreign fund outflow in the month of October.

“Last week, retailers were net sellers of RM171.54 million worth of equities, with local institutions at RM715.48 million net during the same period.

“This marked the second consecutive week of local institutions as net buyers on Bursa,” it said.

MIDF Research said the opposite pattern holds true for retailers as the first week of October saw the second consecutive week of net selling as retailers exited en masse, albeit with a smaller outflow.

“We opine that this could be due to the ending of the loan moratorium as retail investors might have decided to lock in the gains seen since March this year,” it said.

MIDF said as the market reopened last Monday, foreign investors sold RM292.6 million net of local equities, with retailers and local institutions as net buyers at RM47.5 million and RM245.2 million respectively.

“However, this outflow lessened as the week went by, with last Tuesday’s and Wednesday’s net selling falling to RM167.9 million and RM83.8 million respectively.

“The largest outflow was on Monday at RM292.60 million and smallest outflow was on Thursday at RM57.75 million,” it said.

MIDF said this reversed last Friday with a foreign inflow of RM58.1 million.

“This was probably due to renewed interest in glove stocks as the Covid-19 pandemic seemed to be on the cusp of a second wave.

“Furthermore, financial markets were shocked by news that US President Donald Trump had contracted Covid-19,” it said.

MIDF said in terms of participation, retail investors recorded a weekly decrease of 19.37% in average daily trading value (ADTV), while foreign investors experienced a decrease in ADTV of 3.66%.

“To note, local institutions also saw a decrease of 23.13% in weekly ADTV,” it said.

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