KUALA LUMPUR, Nov 15 — Foreign investors remained net buyers on Bursa Malaysia for the sixth week ended Nov 12, with a net inflow of RM359.14 million against RM67.94 million a week ago, MIDF Research said.
In its Strategy Report released today, the research house said as the market reopened last Monday, local institutions and retailers were net sellers and net buyers amounted to -RM142.56 million and RM13.32 million, respectively.
“Meanwhile, foreign investors were net buyers to the tune of RM129.24 million,” it said, adding that foreign investors were net buyers for the majority of the week except on Tuesday.
It said the largest foreign inflow was recorded on Friday and the only outflow on Tuesday to the tune of RM177.45 million and -RM47.66 million, respectively.
“Retailers were net buyers for every day of the week and largest net buying by the retailers was recorded on Tuesday and smallest net buying was on Friday to the tune of RM80.38 million and RM12.45 million, respectively,” it said.
For the week, MIDF Research said retailers net bought RM185.75 million worth of equities in Bursa Malaysia.
Meanwhile, it said local institutions recorded cumulative weekly net selling of -RM544.49 million in which the institutions were net sellers for every day of the week with the largest net selling on Friday amounted to -RM189.90 million, while the smallest net outflow was on Tuesday amounted to -RM32.72 million.
“Since the beginning of 2021, cumulatively, retailers have been the only net buyers of our equity market to the tune of RM11.36 billion.
“Local institutions and foreign investors were net sellers amounted to -RM9.61 billion and -RM1.75 billion, respectively,” it said.
In terms of participation, the research house said retail investors, local institutions and foreign investors recorded a weekly movement of -1.70 per cent, -14.66 per cent and -19.91 per cent, respectively, in average daily trade value (ADTV).
Meanwhile, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said foreign investors have been accumulating local shares although the trend has moderated recently.
“While this is a positive indication towards Malaysian assets by the foreign funds, the latest third quarter (Q3) 2021 gross domestic product (GDP) served as a reminder that the economy is highly susceptible to restriction on human mobility,” he told Bernama.
Therefore, he said the rise in the infectivity rate of 1.0 recently indicates that the risks associated to COVID-19 and the possible reimposition of another round of Movement Control Order cannot be totally ruled out.
“At the moment, the economic outlook is still positive whereby the country is on track to achieve 3.0 to 4.0 per cent growth this year and 5.5 to 6.5 per cent next year.
“This would mean companies’ earnings would do well in 2022 as there will be pent up demand on goods and services,” he added.