KUALA LUMPUR (Oct 25): Permodalan Nasional Bhd (PNB) was the top institutional seller on Bursa Malaysia in the second quarter of 2022 (2Q2022) to the tune of US$605.9 million (about RM2.87 billion), according to Bursa Digital Research.

In a note on Tuesday (Oct 25), Bursa's research arm said the government-owned fund manager’s outflow more than doubled quarter-on-quarter (q-o-q) to US$605.9 million, from US$230.6 million in 1Q2022.

“The top three institutional sellers on Bursa Malaysia were PNB at US$605.9 million, Principal Islamic Asset Management Sdn Bhd at US$43.2 million, and Candriam Belgium S A at US$34.5 million.

“The top three buyers were [the] Employees Provident Fund (EPF) (US$373.9 million), BlackRock Fund Advisors from the US (US$62.7 million), and The Vanguard Group (US$56.9 million),” Bursa said.

In all, Bursa said cumulative capital outflows from government-linked investment companies (GLICs) in the domestic market narrowed to US$198.2 million in 2Q2022 from US$633.9 million in 1Q2022 as a result of EPF and Retirement Fund (Inc) (KWAP) having turned net buyers.

This was based on nine GLICs in S&P Global Market Intelligence’s database — EPF, PNB, KWAP, Amanahraya Investment Management Sdn Bhd, Khazanah Nasional Bhd, Lembaga Tabung Angkatan Tentera, Lembaga Tabung Haji, Pertubuhan Keselamatan Sosial, and PMB Investment Bhd.

On an industry basis, Bursa said the consumer goods industry saw the most significant outflow from GLICs with US$649.11 million, but noted that outflow momentum did slow by 12.4% q-o-q as KWAP turned net buyer of the industry.

Meanwhile, the basic materials industry recorded the largest inflow in 2Q2022 with US$213.66 million, followed by the financial (US$177.98 million) and industrial (US$115.29 million) industries.

“GLICs turned net purchaser of [the] financial industry, led mainly by EPF (US$209.03 million), KWAP (US$20.13 million) and PMB Investment (US$380,000).

“During the quarter, disposal of financial stocks by PNB was lowered by 86.7% q-o-q to US$19.9 million [versus US$150.46 million], while Khazanah Nasional net sold US$31.66 million of CIMB Group Holdings Bhd,” Bursa said.

By companies, GLICs bought the most into Petronas Chemicals Group Bhd with net inflow of US$213 million, followed by CIMB Group Holdings Bhd (US$121.9 million) and RHB Bank Bhd (US$47.4 million).

The largest net outflow among GLICs involved Sime Darby Plantation Bhd (US$604.1 million), IOI Corp Bhd (US$42.3 million) and Tenaga Nasional Bhd (US$29 million).

As for institutional investors ex-GLICs, the quarter saw net inflow into Top Glove Corp Bhd (US$59.9 million), Kuala Lumpur Kepong Bhd (US$27.3 million) and Bermaz Auto Bhd (US$19.5 million).

Net outflow occurred in Press Metal Aluminium Holdings Bhd (US$27.5 million), Inari Amerton Bhd (US$24 million), and Malayan Banking Bhd (US$12.9 million).

In all, inflows from institutional investors ex-GLICs generally slowed to US$98.88 million in 2Q2022, from US$132.57 million in 1Q2022, the research arm said.