Foreign investors turn net buyer last week, acquiring RM286m equities on Bursa Malaysia, says analyst | Money


Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said Bursa Malaysia began the week on a positive note as international investors were net buyers of local equities for three consecutive days from Monday to Wednesday last week. — Bernama pic

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KUALA LUMPUR, March 8 — Foreign investors acquired RM286.0 million net of local equities on Bursa Malaysia during the first week of March 2021 compared with the RM477.4 million disposed of in the preceding week.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said Bursa Malaysia began the week on a positive note as international investors were net buyers of local equities for three consecutive days from Monday to Wednesday last week.

“The foreign net inflow was the highest on Tuesday at RM240.2 million net as investors engaged in stock-picking amid sector rotational play.

“This was also the highest foreign net inflow since Jan 8, 2021 which saw international investors buying RM435.5 million net of local equities,” he told Bernama.

Adam said the three-day selling streak, nevertheless, was snapped on Thursday as foreign investors withdrew RM162.0 million net, tracking the negative performance of Asian equities after an overnight surge in bond yields again dragged shares on Wall Street.

Later on Friday, foreign funds acquired RM42.0 million despite the United States Nasdaq Index closing down nearly 10 per cent from its February record high on Thursday after Federal Reserve chairman Jerome Powel’s remarks reportedly disappointed investors worried about rising longer-term US bond yields.

Separately, MIDF Amanah Investment Bank Bhd (MIDF Research) said on a year-to-date basis, foreign net selling this year came in lower compared to the same period last year.

Net selling by foreigners was -RM1.42 billion for 2021 thus far compared with RM3.30 billion in the same period in 2020.

“As for the retailers, they were net buyers every day last week with the largest net buying recorded on Monday at RM121.06 million while the smallest net purchase was on Tuesday at RM22.45 million.

“Meanwhile, local institutions were net sellers every day of the week, except on Thursday,” it said in a note.

MIDF Research said the mixed ending was recorded after four weeks pattern of net selling this year.

Cumulative, weekly outflow was to the tune of -RM590.40 million with the biggest net selling recorded on Tuesday at -RM262.62 million while the smallest net selling was on Friday at -RM83.34 million.

Since the beginning of 2021, cumulatively, retailers have been the only net buyers of the local equity market to the tune of RM4.05 billlion.

The research firm said local institutions and foreign investors were net sellers to the tune of -RM2.64 billion and -RM1.42 billion, respectively.

“In terms of participation, the retail investors, foreign investors and local institutions recorded a weekly decrease of -21.51 per cent, -30.48 per cent and -22.37 per cent in average daily trade value, respectively,” it added. — Bernama



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