First week of net foreign inflow since November

PETALING JAYA: Foreign funds turned net buyers last week with an inflow of RM223.8 million, according to a fund flow report by MIDF Research.

It stated that last week opened with a foreign outflow of RM32 million net of local equities, while retailers and local institutions stood as net buyers to the tune RM16.67 million and RM15.30 million respectively.

The research house highlighted that the tables turned on Wednesday and Thursday as offshore investors emerged as net buyers amounting to RM265.11 million and RM59.19 million respectively, after two straight days of net selling.

This marks the first net inflow from foreign investors since early November.

Cumulatively, MIDF Research noted that foreign investors were net sellers for the month of December with RM735.86 million outflow, lower than the RM1.03 billion reported in the previous month.

Last week, retailers were active buyers on every day of the week except on Wednesday, recording the largest net inflow on Tuesday and smallest on Thursday, to the tune of RM34.3 million and RM5.5 million, respectively.

For local institutions it was almost the opposite, as it came out as net sellers every day except early in the week, with the largest net selling reported on Wednesday with RM239.28 million and the largest net buying was on Tuesday at RM34.26 million.

So far in 2020, the research house stated that foreign investors’ net selling has reached RM24.76 billion worth of equities on Bursa.

Compared to the other three Southeast Asian markets it tracks, Thailand recorded the most foreign net inflow while Philippines experienced the only outflow.

In terms of participation, the retail investors recorded a weekly decrease of 21.46% in average daily trade value (ADTV) while the foreign investors and local institutions experienced declines in ADTV of 52.77% and 34.19% respectively.

Source: The Sun Daily