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Foreign net selling on Bursa rose to RM268.8m last week

23 Nov 2020 / 11:09 H.

PETALING JAYA: Foreign investor was net seller amounting to RM268.8 million last week, according to MIDF Research.

As market reopened on Monday last week, foreign investors sold RM126.4 million net of local equities, with retailers and local institutions as net buyers at RM15.0 million and RM111.4 million respectively.

However, for retailers buying momentum was reversed mid-week with the largest outflow was on Wednesday to the tune of RM107.52 million. This was followed by local institutions momentum as well, but it recovered on Thursday with the largest inflow of the week at RM162.76 million. Local institutions ended the week with net inflow of RM269.84 and retailers net sold to the tune of only RM1.05 million.

“Retailers stopped its buying streak on the sixth week after five weeks of buying momentum. We posit that last week was a mild profit taking from retailers as following the recent rally on the vaccines news. This has tapered down as of now, pending for more concrete trial results in the future,“ MIDF said in its fund flow report today.

Foreign investors participation last week were mostly recorded as net outflow with the largest inflow at RM169.66 million on Wednesday and largest outflow was on Thursday at RM170.54 million.

“So far in 2020, foreign investors net selling has reached RM23.40 billion worth of equities on Bursa. In comparison to another three South East Asian markets that we tracked last week; Thailand recorded the most foreign net inflow while Malaysia experienced the biggest outflow compare to the others.”

Net buying amounted to RM11.82 billion came from retailers thus far in 2020, while local institution bought to the tune of RM11.21 billion.

In terms of participation, the retail investors recorded a weekly decrease of 0.20% in average daily trade value (ADTV) while the foreign investor experienced decrease of ADTV of 16.08% and local institution at ADTV of 5.25%.

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