According to the recent MIDF Research’s weekly fund flow report, foreigners have been net sellers for 20 out of 26 weeks this year, resulting in a total net outflow of RM4.19 billion.
Among the sectors, construction recorded the highest net foreign inflow of RM71.9 million, followed by property (RM16.4 million) and transportation and logistics (RM6.2 million).
Conversely, the financial services sector experienced the highest net foreign outflow of RM136.5 million, followed by industrial products and services (RM86 million) and technology (RM72.9 million).
Note that foreign selling of local equity on Bursa Malaysia extended its streak for the eleventh consecutive week, reaching RM359.9 million in the previous week compared to RM240 million the week before.
MIDF Research also highlighted that local institutional investors remained net buyers for the fifth consecutive week, with a net inflow of RM278.3 million. Year-to-date, they have been net buyers for 20 out of 26 weeks, with a total net inflow of RM3.73 billion.
Meanwhile, local retailers turned into net buyers last week, purchasing RM81.6 million worth of domestic equities. Year-to-date, local retailers have been net buyers for 14 out of 26 weeks, with a total net buying of RM463.2 million.
In terms of participation, there was a decrease in average daily trading volume (ADTV) from retailers (2%) and local institutions (7.3%), while foreign investors experienced an increase of 3.7%.
Regarding the international outlook, MIDF Research noted that hawkish remarks from Federal Reserve Chair Jerome Powell and strong economic data have fueled speculation of continued rate hikes.
However, signs of cooling inflation may have reassured investors. Among the major indices tracked globally, 14 out of 20 ended the week with gains. France’s CAC 40 had the highest increase of 3.30%, followed by India’s Sensex (2.76%) and the S&P 500 (2.35%). However, the FBM KLCI experienced a decline of 1.4% for the week.
