KUALA LUMPUR: Foreign funds continued to sell Malaysian equities last week, with net selling of RM237.09mil compared with RM28.38mil outflow in the preceding week, according to MIDF Research.
“Cumulatively for October, foreign investors were net sellers to the tune of RM809.38mil,” MIDF said in its weekly fund flow report.
Last week, retailers were net buyers of RM133.15mil worth of equities last week, with local institutions at RM103.96mil net during the same period. This marks the fourth consecutive weeks of local institutions as net buyers on Bursa Malaysia.
MIDF noted that after three consecutive weeks as net sellers, last week saw retailers as net buyers. It began on Tuesday with net buying of RM81.45mil and carried on for the rest of the week.
“This is a potential signal for the return of buying appetite for retailers with bargain hunting activities, renewed interest in glove stocks with the surge in Covid-19 cases and some political uncertainty subsided.
“Comparatively, the last three weeks saw retailers as net sellers to the tune of RM491.32mil worth of Malaysian equities,” MIDF said.
Foreign investors bought RM38.97mil net of local equities on Monday, with retailers and local institutions as net sellers and net buyers at RM67.94mil and RM29.38mil respectively.
However, MIDF said this inflow was negated as the week went by, with net selling onwards since Wednesday. The largest outflow was on Friday at RM151.45mil and smallest outflow was on Thursday at RM47.56mil.
“So far in 2020, foreign net selling has reached RM22.59bil worth of equities on Bursa.
“In comparison to another three south east Asian markets that we tracked last week; Indonesia recorded the least foreign net outflow while Thailand experienced the biggest outflow compared to the others,” MIDF said.
In terms of participation, the retail investors recorded a weekly increase of 27.79% in average daily trade value (ADTV) while the foreign investor experienced an increase of ADTV of 29.85%.
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