Foreign investors sold RM0.25 billion Malaysian equities in Apr 2023, smaller than the RM1.35 billion in the month before. This is the eight sequential month of foreign net sell, lifting their cumulative net sell for 2023 year to date to RM2.12 billion, said Maybank Investment Bank Bhd (MIBB) in a recent report.
Most of the selling in April occurred in the last seven trading days. Market foreign holding retreated to 20.0% as at 30 Apr 2023, a new low since the global financial crisis.
Domestic institutions bought RM0.21 billion in April, lifting their net buy for the year to date to RM1.99 billion. Retail investors bought RM0.04 billion, bringing their year to date net buy to RM0.13 billion.
Trade participation by foreign investors was lower month-on-month at 22% in April; DI was 48.1% and retail was 29.9% as equity average daily trade value retraced to RM1.8 billion.
Across ASEAN, foreign investors were also selling in Thailand at USD0.23 billion and Vietnam at USD0.12 billion in April; buying in Indonesia at USD0.83 billion and Philippines at USD0.03 billion. At USD0.06 billion, foreign net sell of Malaysian equities in April was the 3rd largest.
Year to date, foreign outflow was highest from Thailand equities at USD1.88 billion, followed by Philippines and Malaysia at USD0.48 billion each. Inflows in Indonesia was USD1.27 billion and Vietnam USD0.13 billion.
For Malaysian, the total foreign net buy/(sell) value for the 12 months to Apr 2023, as % of market capitalisation, was -0.3%. Based on Dibots data, the top 10 stocks in Malaysian sold by foreign investors in April were CIMB, Tenaga, RHB, Top Glove, myEG, Public Bank, YTL Power, Sime Darby, Hartalega and Berjaya Food.
Foreign net sell of CIMB made up 62% of overall foreign net sales of Malaysian equities. The top 10 stocks bought by foreign investors during the month were—Maybank, Hibiscus, M’sia Airports, Genting M’sia, Celcom-Digi, QL Resources, Press Metal, IHH and YTL Corp.
Foreign demand for RM bonds sustained in Mar 2023 as global bonds rallied, triggered by the US regional bank failures. Inflows into RM bonds accelerated to RM6.6 billion in March, broadly in line with regional trend.
This is the largest monthly inflow in over a year since Aug 2021 and also marks the third consecutive month of net inflows. Foreign shares of MGS rose to 36% and MGS+GII 23.1%.
Offsetting the RM1.3 billion net sell in Malaysian equities in Mar 2023, total portfolio flow was RM5.3 billion in March, bringing the cumulative portfolio flow for Jan-Mar 2023 to +RM9.5 billion.
