KUALA LUMPUR (Oct 18): Bursa Malaysia total market capitalisation of companies listed on the local bourse was 6.1% lower at RM1.602 trillion as at Sept 30, its lowest year-to-date (YTD), from RM1.706 trillion a month earlier.

In a statement on Tuesday (Oct 18), the stock exchange said market sentiment was adversely affected by renewed concerns over a global recession at a time when the US raises interest rates to curb inflation, as well as the impact of investors’ evaluation over geopolitical tensions on world markets.

“Average daily traded value (ADV) growth in the month remained muted at RM1.76 billion (versus RM1.74 billion in August). This brought [the] nine-month ADV to RM2.11 billion,” Bursa Digital Research analysts wrote in a note on behalf of the research arm of Bursa.

On par with most regional peers in the emerging market in Asia (excluding China), Bursa Malaysia recorded a net foreign outflow of RM1.63 billion. 

This was the second month with net foreign outflow in 2022, in addition to June. However, as of YTD, foreign investors remained net buyers of local securities at RM6.61 billion. 

“Foreign selling momentum in the financial sector generally intensified week-on-week, reaching RM484 million towards the end of the month. The outflow was primarily absorbed by local funds which turned net buyers of the sector in the last two weeks of September, while local retailers also added financial stocks to their portfolios during the month,” said Bursa.

Financial counters that topped foreign outflow were Malayan Banking Bhd and Public Bank Bhd, wherein net disposal from each counter were over RM100 million. 

Whereas for the industrial sector, outflow escalated to RM472 million in September (August: -RM41 million), led mainly by Petronas Chemical Group Bhd (Petchem) and Press Metal Aluminium Holdings Bhd. Foreign funds bought into the construction sector in September, specifically Gamuda Bhd.

Net buy momentum into the industrial sector was significantly strengthened month-on-month to RM432 million in September (versus RM27 million in August). 

“This was also the highest net purchase into the industrial sector by local institutions for the nine-month to-date. In September, local institutional inflow was led mainly by Petchem,” added Bursa. 

Local institutions added RM340 million of technology stocks, an increase of 22% from RM279 million in August.

“This was also their highest net purchase into the sector, YTD. Domestic funds mainly bought into MyEG Services Bhd, wherein the counter recorded a consistent inflow for the past two months,” the stock exchange reported.