Foreign Investors Continue To Dump Malaysian Equities

It was a shortened trading week of four days on Bursa Malaysia last week due to the Federal Territory Day celebration on Wednesday. Foreign investors continued to dump Malaysian equities for the fourth consecutive week, net selling -RM380.8m, 89.6% higher than the week prior. They net bought RM35.6m on Thursday, but net sold -RM48.6m on Monday, -RM98.9m on Tuesday and -RM68.1m on Friday.

MIDF says there may be renewed signs of political uncertainties that have emerged following the sacking and suspension of senior and influential UMNO members, as the party is part of the unity government. The appointment of the Prime Minister’s daughter as his economic and senior adviser also sparked debates from various parties, who have alleged nepotism and cronyism and that it would affect the country’s corruption perception index ranking.

The top three sectors which saw net inflows by foreign investors last week were Consumer Products & Services at RM58.7m, Technology at RM23.7m, and Telecommunications & Media at RM15.7m. The bottom three sectors with net outflows were Financial Services at -RM174.0m, Healthcare at -RM43.3m and Plantation at -RM35.9m. Year-to-date, foreign investors have net sold -RM89.1m.

Local institutions maintained their shopping spree on Bursa Malaysia, net buying RM130.6m last week. This is their fourth consecutive week of net buying. Local institutions net bought RM9.6m on Monday, RM59.3m on Tuesday, RM0.5m on Thursday and RM61.2m on Friday. Year-to-date, local institutions have net bought RM816.0m.

Local retailers turned net buyers last week, reversing the net selling trend of three consecutive weeks. They net bought RM49.4m as of last Friday. They only net sold -RM36.0m on Thursday but were net buyers of RM38.9m on Monday, RM39.6m on Tuesday and RM6.9m on Friday.

In terms of participation, there was an increase in average daily trading volume (ADTV) across the board by 64.7%, 19.6% and 7.8% from foreign investors, local institutions and local retailers respectively

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