The net outflow trend could be due to the fact that Malaysia’s 15th General Election produced a hung parliament for the first time in its history said MIDF in its weekly fund flow report.
As a result of the resolution to the political impasse, foreigners changed their stance to register a net buying of RM340.8m, the only net inflow of the week. However, this was not enough to reverse the net selling done in the prior three days. In fact, Friday saw the net selling deepen.
The top three sectors which saw net outflows by foreign investors last week were Consumer Products and Services at -RM132.6m, Healthcare at -RM35.8m, and Industrial Products and Services at -RM29.2m. Meanwhile, the Financial Services were the only net buying sector by foreigners at RM103.2m.
Local institutions were net sellers last week with a total net outflow of -RM4.2m with the bulk of it recorded on Thursday at -RM158.69m and Monday at -RM21.65m. All other days saw local institutions net buying at RM64.96m, RM46.87m, and RM64.31m worth of equities on Tuesday, Wednesday, and Thursday respectively.
Local retailers continued to be net buyers last week with a total weekly net inflow of RM85.91m. This was a continuation of net inflows last week totalled RM85.91m. Retailers started off the week by net buying RM189.35m worth of equities. They then turned into net sellers on Thursday and Friday with net outflows of -RM182.12m and -RM22.02m correspondingly.
International funds have been net buyers for 26 out of the 47 weeks of 2022, with a total net inflow of RM5.83b. Local institutions were net sellers for 32 out of 47 weeks, with a total net outflow of –RM8.99b. Local retailers have been net buyers for 30 out of 47 weeks of 2022. Year-to-date, they have been net buyers at RM2.17b.
In terms of participation, there was an improvement in terms of average daily trade value (ADTV) across retailer investors (67.37%), institutional investors (62.23%), and foreign investors (32.94%).
