With talk of a snap GE15: foreign investors have been leaving Bursa Malaysia

(Focus Malaysia) – BURSA Malaysia continued to see persisting net selling activities from foreign investors for the fourth consecutive week with the latter having offloaded -RM740.6 mil worth of equities last week or 32% higher than the RM562.6 mil posted the previous week.

Foreign investors were net sellers for every trading day of the week with the heaviest outflows recorded on Monday (Sept 26) at -RM208.7 mil followed by -RM202.9 mil on Wednesday (Sept 28) and -RM149.5 mil on Thursday (Sept 29), according to MIDF Research.

“The outflows recorded on Tuesday (Sept 27) and Friday (Sept 30) were lower at -RM95.0 mil and -RM84.4 mil respectively,” the research house pointed out in its weekly fund flow report.

Fortunately, local institutions provided some stabilising effect by emerging net buyers during every trading day of last week.

Their heaviest inflow was recorded on Monday (Sept 26) at RM224.1 mil before it moderated to RM36.6 mil on Tuesday (Sept 27) but picked up again to RM177.3 mil on Wednesday (Sept 28).

A further net inflow of RM126.9 mil and RM104.3 mil were posted on Thursday (Sept 29) and Friday (Sept 30) respectively. Cumulatively, local institutions net bought RM669.2 mil worth of equities last week.

Local retailers also remained net buyers for the third consecutive week with a total weekly inflow of RM71.4 mil or about one third of the amount of the week prior.

They started of the week by net selling -RM15.3 mil before turning into net buyers from Tuesday (Sept 27) through Thursday (Sept 29) at RM58.4 mil, RM25.6 mil and RM22.6 mil. But they concluded the week’s trading by net selling -RM19.9 mil.

To date, international investors have been net buyers for 24 out of the 39 weeks of 2022 with a total net inflow of RM6.62 bil, while local institutions were net sellers for 30 out of 39 weeks with a total net outflow of -RM8.89 bil.

Meanwhile, local retailers have been net buyers for 26 out of 39 weeks of 2022. Year-to-date, they have net bought RM2.27 bil of equities from Bursa Malaysia.

In terms of participation, there was an increase in average daily trade value (ADTV) across all investor classes at +8.3% for retail investors, institutional investors (+15.7%) and foreign investors (+20.6%).

In comparison with another three Southeast Asian markets tracked by MIDF Research last week, all four markets posted net outflow with the Philippines being the highest at US$229.56 mil followed by Thailand (-US$188.55 mil), Indonesia (-US$188.35 mil) and Malaysia (-US$60.2 mil).

The top three stocks with the highest net money inflow last week were Petronas Chemicals Group Bhd (RM4.73 mil), Telekom Malaysia Bhd (RM4.13 mil) and Malayan Banking Bhd (Maybank) (RM1.59 mil).