Foreign investors in buying mode for fourth week straight on Bursa Malaysia

Foreign funds maintained their net buying stance on Bursa Malaysia for a fourth consecutive week, which saw a net inflow of RM451.7 million for the week ended Aug 12, 2022, said MIDF Research.

This was 16.4% higher than the RM388.21 million of net buying seen the previous week, it said in its weekly Fund Flow Report today.

The week started with foreign funds net buying on Monday and Tuesday, amounting to RM530,000  and RM15.8 million respectively.

Despite concerns of US inflation on Wednesday, foreign funds net sold only minus RM3.8 million. This was the only day of net selling by foreigners.

MIDF Research said the bulk of the net buying happened on Thursday and Friday at RM232.9 million and RM206.2 million respectively, after the release of lower than expected US inflation data and stronger than expected GDP data for Malaysia.

Local institutions continued to be net sellers for a fifth week, at a rate of minus RM573 million, more than double the amount from the previous week which was negative RM266.9 million.

Meanwhile, local institutions have been net sellers for eight consecutive trading days since Aug 3.

Local retailers reversed their net selling trend over three weeks with a net buy of RM121.3 million for the week.

They were net buyers from Monday to Wednesday and on Friday but net sellers on Thursday.

To date, international funds have been net buyers for 21 out of the 32 weeks of 2022, with a total net inflow of RM7.11 billion.

Local institutions were net sellers for 25 out of 32 weeks, with a total net outflow of minus RM8.8 billion.

Local retailers have been net buyers for 20 out of 32 weeks in 2022 so far.

Year-to-date, they have been net buyers at RM1.7 billion. 

In terms of participation, there was an increase in the average daily trade value (ADTV) among local institutional investors by 1.05%.

Reductions in ADTV were seen among foreign investors and local retailers by negative 3.57% and negative 3.36% respectively.