KUALA LUMPUR: Foreign funds were net sellers again on Bursa Malaysia in the week ended Oct 23 at RM214.4mil but this was at a smaller pace from the previous week, MIDF Research says.
In its research note on Monday, it said foreign investors were net sellers at RM479.5mil for October so far.
“So far in 2020, foreign investors net selling has reached -RM22.81b worth of equities on Bursa, ” it said.
MIDF Research said in comparison with three other South East Asian markets that it tracked last week; Malaysia recorded the least foreign net outflow while Indonesia experienced the biggest outflow.
In terms of retail participation, last week saw retailers turned net buyers with RM446.5mil worth of equities last week, while local institutions were net sellers at -RM232.1m during the same period.
“We believe that this suggest that retailers interest are starting to return. Last week also marks the reversal to the net selling after fourth consecutive weeks of local institution as net buyers on Bursa, ” it said.
MIDF Research said this was the second week where there was stronger net buying from retailers after three consecutive weeks as net sellers previously.
It began on Tuesday with net buying of RM180.86mil and carried 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 against a volatile Malaysian political backdrop.
“Net buying amounted to RM11.6bil came from retailers thus far in 2020, while institution bought to the tune of RM10.9bil, ” it said.
Genting registered the highest net inflow of RM5.44mil last week. Its share price inched up 1% for the week, outperforming the local bourse which fell -0.61% on-week.
MISC saw the second highest net money inflow of RM1.99mil. Its share price was 5.45% higher during the week.
It is notable that net money inflow amidst retreating share price may indicate a buy on weakness (BOW) stance among some investors.
As for Genting Plantation, it saw the third highest net money inflow of RM1.82mil. Its share price was +2.26% lower during the week.
However, Top Glove saw the largest net money outflow of -RM9.61mil last week. Its stock price fell 6% for the week.
Mah Sing recorded the second largest net money outflow at -RM3.64mil during the week under review. Its share price rose by 10.05% higher during the week.
Dialog registered the third largest net money outflow of -RM2.29mil in the review week. Its share price was unchanged during the week under review.
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