KUALA LUMPUR: Foreign net selling of Malaysian equities on Bursa Malaysia extended for the third week as investors sold RM543.91mil last week, from RM350.85mil a week before.
“Comparatively, for the cumulative data for the month of September, foreign investors were net sellers to the tune of RM1.43bil, bigger than the preceding August at RM1.19bil worth of equities.
“If this trend continues, we might see higher foreign fund outflow for the month of October,” MIDF said in its weekly fund flow report.
The research house noted that retailers were net sellers of RM171.54mil worth of equities last week, with local institutions at RM715.48mil net during the same period. This marks the second consecutive week of a local institution as net buyer on Bursa Malaysia.
“The opposite pattern holds true for retailers as the first week of October saw the second consecutive week of net selling as retailers exit en masse, albeit with smaller outflow.
“We opine that this could be due to the ending of the loan moratorium which retail investors might have decided to lock in the gains seen since March this year,” MIDF said.
Foreign investors sold RM292.6mil net of local equities on Monday, with retailers and local institutions as net buyers at RM47.5mil and RM245.2mil respectively.
Net selling fell to RM167.9mil and RM83.8mil on Tuesday and Wednesday respectively. The largest outflow was on Monday at RM292.60mil and smallest outflow was on Thursday at RM57.75mil.
“This reversed on Friday with a foreign inflow of RM58.1mil. This is probably due to renewed interest in glove stocks as the Covid-19 pandemic seems to be on a cusp of a second wave. Furthermore, the financial markets were shocked by news that President Trump has contracted Covid-19,” MIDF said.
In terms of participation, the retail investors recorded a weekly decrease 19.37% in average daily trade value (ADTV) while the foreign investor experienced the decrease of ADTV of 3.66%. To note, local institutions also saw a decrease of 23.13% in weekly ADTV.
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