KUALA LUMPUR: Foreign investors began 2023 on a positive note by net buying RM72.3 million of Malaysian equities on Bursa Malaysia in the first week, compared with net selling of RM204.6 million during the final week of last year, according to MIDF Research.
In its weekly fund flow report today, it noted that it was a shortened trading week of four days on the local bourse last week due to the New Year’s Day replacement holiday on Monday.
“Like its other Southeast Asian counterparts, the attraction of foreign inflows into Malaysia may be due to positive sentiments of a boost from China’s reopening. Prime Minister Datuk Seri Anwar Ibrahim also put his foot down that the decision on interest rates is the sole prerogative of Bank Negara Malaysia, in which the government will not intervene, a move that lifted the confidence of investors.
“This came amid questions directed by certain parties towards the central bank on setting the overnight policy rate,” it said.
MIDF Research said foreign investors net sold RM32.3 million and RM22.6 million on Tuesday and Wednesday before picking up RM86.6 million and RM40.6 million on Thursday and Friday respectively.
“The top three sectors which saw net inflows by foreign investors last week were financial services at RM99.2 million, construction at RM11.1 million and energy at RM5.3 million. The bottom three sectors with net outflows were plantation at RM15.9 million, telecommunications and media at RM13.8 million and utilities at RM6.7 million,” it said.
The research house noted that local institutions turned net sellers for the week, with RM124.4 million. They began the week net buying RM19.2 million on Tuesday, before net selling from Wednesday to Friday at RM6.1 million, RM91.9 million and RM45.6 million.
Local retailers remained the most optimistic, net buying every day which amounted to RM52.1 million for the week. They net bought RM13.1 million on Tuesday, RM28.7 million on Wednesday, RM5.3 million on Thursday and RM5.0 million on Friday.
As for participation, there was an increase in average daily trading volume among retail investors by 0.8% while there were declines among local institutions and foreign investors by 17.6% and 19.4% respectively.
