business

Foreign net buying of Malaysian stocks highest year to date

KUALA LUMPUR: Foreign investors were the only net buyers on local equity market for the week ended March 18, with a net inflow of RM1.18 billion,l on the back of bargain hunting activities, MIDF Research said.

The firm said international funds had been net buyers on Bursa Malaysia for nine out of first 11 weeks of 2022. 

"We noted that last week, the net buying by foreign investors was the highest for the year, totalled to RM1.18 billion. 

"The previous highest net buying by foreigners was on the week ended March 4 with RM1.08 billion," MIDF Resesrch said in a note today.

The firm said as market reopened on Monday last week, foreign investors and local retail bought RM219.24 million and RM35.27 million net of local equities respectively. 

Local institutions started the week as net sellers to the tune of RM254.50 million.

MIDF Research said foreigners continued to be net buyers on every day of the week since February 7. 

The largest foreign net inflow for last week was recorded on Wednesday at RM396.27 million and the smallest inflow was on Friday at only RM31.81 million.

For last week, local institutions were active sellers. 

MIDF Research said the largest net outflow was on Wednesday and the smallest on Friday at RM330.39 million and RM23.14 million respectively. 

As for the retailers, the market saw retailers as net sellers on every day of the week except on Monday (RM35.27 million) and Tuesday (RM9.28 million).

The largest net selling was recorded on Thursday at RM145.89 million while the smallest net selling was on Friday at RM8.67 million.

Overall, for the 11th week of 2022, foreign investors finished strong as net buyers at RM1.2 billion. 

The local institutions were the strong net sellers at RM1.0 billion followed by retailers net selling amounting to RM175.88 million.

Meanwhile, MIDF Research said in terms of participation the foreign investors, local institutions and retail investors recorded a weekly movement of +64.50 per cent, -19.68 per cent and -23.96 per cent respectively in average daily trade value.

"On a year-to-date basis, we have observed RM1.3 billion in net inflows from foreign investors and RM0.5 billion in net inflows from retailers. 

"Meanwhile, local institutions were the only net seller, to the tune of RM6.1 billion," it added.

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