KUALA LUMPUR (Feb 13): Foreign buying of Malaysian equities rose to RM400.7 million last week from RM131.8 million the prior week, marking the third consecutive week of net purchases.
In its weekly fund flow report on Tuesday, MIDF Research said foreigners recorded net buying every day last week, with Tuesday witnessing the highest inflow of RM188.9 million.
“The sectors with the highest net foreign inflows were financial services (RM211.2 million), utilities (RM200.7 million), and technology (RM56.3 million).
“Meanwhile, the highest net foreign outflows were [recorded by] plantation (RM36.4 million), healthcare (RM27.5 million), and industrial products and services (RM15.4 million),” it said.
MIDF said local institutions persisted in net selling domestic equities for the third consecutive week, amounting to RM276.6 million.
It said the financial services sector (218.7 million) saw the highest net outflow by this investor group, with them disposing of stocks such as Malayan Banking Bhd or Maybank (RM88.5 million), CIMB Group Holdings Bhd (RM54.5 million), and Public Bank Bhd (RM44.5 million).
“Local retailers resumed net selling on Bursa Malaysia at RM124.1 million, after briefly engaging in net buying of RM9.5 million the week before.
“In terms of participation, there were increases in the average daily trading volume among local retailers (36.5%), local institutions (31.7%), and foreign investors (35.5%),” it said.
Commenting on the international scenario, MIDF said most global indices closed higher last week, with many Asian markets having a shortened trading week ahead of Chinese New Year.
It said the market rally so far this year had been fuelled by a solid earnings season, easing inflation data, and a resilient US economy.
This momentum had driven the S&P to close above the 5,000-point level, initially touched during last Thursday’s session, it said.
“During the week, 14 out of the 20 indices monitored exhibited positive gains.
“Leading the advances were China’s Shenzhen CSI 300 (5.83%), Nasdaq (2.31%), and Vietnam’s Ho Chi Minh VSE (2.22%).
“Conversely, notable decliners included Singapore’s Straits Times (1.30%), Australia’s ASX 200 (0.71%), and India’s Sensex (0.68%),” it said.