KUALA LUMPUR (April 1): Foreign selling of Malaysian equities extended for a fifth week, with a 39% higher outflow of RM435.1 million last week, from RM313.8 million the prior week.

In its weekly fund flow on Monday (April 1), MIDF Research said the three-day net buying streak by the foreigners ended last Monday (March 25), amounting to RM13.7 million.

The research house said that on last Monday, official data revealed that Malaysia’s leading index expanded by 3.2% year-on-year in January 2024, indicating a more promising outlook in the forthcoming months.

“However, starting from last Tuesday onward, net selling resumed.

“The sectors with the highest net foreign inflows last week were property (RM87.1 million), construction (RM20.2 million), and energy (RM16.9 million), while the sectors that recorded the highest net foreign outflows were financial services (RM210.8 million), consumer products and services (RM123.3 million), and plantation (RM94.7 million),” it said.

MIDF said that in contrast, local institutions persisted in their net buying trend for the fifth consecutive week, with a net purchase of RM587.7 million.

It said unlike foreign investors, they recorded a net selling of RM11.9 million last Monday, followed by a net buying of RM599.6 million from last Tuesday to last Friday.

“Local retailers sustained their net selling streak last week, totalling RM152.7 million, selling every trading day for the past 16 days,” it said.

MIDF said the average daily trading volume (ADTV) decreased for retail investors by 0.9% and institutional investors by 0.7%.

However, it said foreign investors recorded a slight increase of 0.5%.

Commenting on international markets, MIDF said the first quarter of 2024 ended on a positive note with the S&P500 and the Dow Jones Industrial Average notching all-time high levels before Wall Street took a break in a shortened trading week in the US in conjunction with Good Friday.

The research house said the market seems to be pricing in the optimism coming from the three expected rate cuts later this year and the Federal Reserve’s improved economic projection of 2.1% this year from 1.4%.

“Last week, the major markets showed positive momentum, with 13 out of 20 indices we monitor experiencing gains.

“Leading the pack were Australia’s ASX 200 (1.63%), followed by Germany’s DAX 40 (1.57%), and India’s Sensex (1.13%).

“Meanwhile, notable declines were observed in Japan’s Nikkei 225 (1.27%), Indonesia’s JCI (0.83%), and the FBM KLCI (0.41%),” it said.