On par with most regional peers, Bursa Malaysia saw a positive net foreign flow of RM 1.978 billion in August — a significant increase from a net inflow of RM175 million in July as foreign funds rotate to ASEAN markets caused by the reopening of borders and economic stimulus theme.
Bursa Malaysia’s trade performance last month saw market capitalisation growing by 0.8% (Month-on-month) to RM1,706 bil as at end-August, compared to RM1,693 bil in July.
The Trade Performance and Fund Flow – August 2022 report, released by Bursa Malaysia today, cited that the overall market sentiment was lifted by a stronger 2Q22 GDP growth at 8.9% in comparison to 5.0% in the first quarter of this year. This also resulted in the positive earnings results of most large cap stocks which surpassed consensus expectations.
Correspondingly, the Average Daily Traded Value improved 29.5% to RM1.7 (Month-on-month) bil in August as compared to RM1.3 bil in July with increased trading participation across all investor segments, led by local institutions which rose by 34% (Month-on-month).
Foreign funds remained as the largest net buyer in the local bourse for the month, extending its net buying position for 7 out of the last 8 months, with Year-to-date net inflow of RM8.2 bil.
Local institutions further extended their net selling which amounted to RM2.4bil in August, 2022 compared to RM41 mil in July, being the only net seller in August.
Bursa Malaysia’s research arm Bursa Digital Research stated: “Local retailers reverted to net buying with over RM141 mil in August after recording their outflow last month.”
Foreign investors continued their buying momentum and remained as the largest net buyer Year-to-date, favouring the Malaysian financial sector. The Foreign inflow to the sector was further strengthened by over RM1,686 mil, with only over RM458 in July, on the back of a positive 2Q2022 earnings results and the outlook in anticipation of the OPR hike.
Meanwhile, the technology sector saw the largest net selling interest (-RM276 mil), led by MYEG (-RM170 mil) and INARI (-RM95 mil).
The sector outflow was offsetted by local institutions with over +RM279 mil.
On a Year-to-Date basis, the financial sector (+RM5.2 bil) continued to lead in terms of foreign inflow followed by Plantation (+RM2.2 bil) and Industrial (+RM1.8 bil).
Meanwhile, technology (-RM916 mil), transport & logistics (-RM739 mil), and health care (-RM167 mil) sectors experienced the largest foreign outflow.
Bursa Digital Research found that local institutions were the only net seller in August while adding exposure to the technology and Industrial sectors. While their outflows intensified to RM2.4 bil in August compared to almost -RM41 mil in July. This led to the combined January-August net outflow of RM10.3 bil.
Local institutions were found to have increased their positions in the sectors of technology (+RM279 mil) and industrial (+RM27mil). At a stock level, inflow was mainly led by INARI (+RM110 mil), MYEG (+RM97 mil) and KLK (+RM72 mil).
The Year-to-date figures show local institutions have built up their exposures in transport & logistics (+RM683 mil), technology (+RM373 mil) and construction (+RM58 mil), while reducing their positions in financial (-RM4.1 bil), industrial (-RM2.5 bil) and plantation (-RM1.8 bil).
The Healthcare sector recorded highest inflow on bargain hunting across the month.
The healthcare sector recorded the highest inflow from retailers as they added RM301 mil in August as against +RM111 mil in July, particularly glove counters on bargain hunting. This has brought the Year-to-date retailer inflow to the healthcare sector to RM1.1 bil.
