MIDF: foreign investors remain net sellers last week, outflow at RM186.2m

MIDF: foreign investors remain net sellers last week, outflow at RM186.2m

In its weekly fund flow report today, MIDF Research opined that the net selling by foreign investors stemmed from higher-than-expected inflation data in the US, prompting investors to expect another aggressive rate hike by the US Federal Reserve. — Bernama pic

Monday, 19 Sep 2022 12:39 PM MYT

KUALA LUMPUR, Sept 19 — Foreign investors continued to be net sellers during the holiday-shortened trading last week, disposing of RM186.2 million worth of equities compared to RM42.49 million worth of equities in the preceding week.

In its weekly fund flow report today, MIDF Research (MIDF) opined that the net selling by foreign investors stemmed from higher-than-expected inflation data in the United States (US), prompting investors to expect another aggressive rate hike by the US Federal Reserve.

Foreign investors were net buyers on Monday at RM47.5 million, before turning into net sellers from Tuesday onwards.

The highest outflow was recorded on Thursday at -RM153.8 million, while Tuesday and Wednesday saw outflows of -RM22.4 million and -RM57.5 million, respectively, the research house said.

It noted that local institutions turned net sellers again last week, albeit at a much lower rate of -RM4.7 million, after briefly turning into net buyers in the previous week.

“They were net sellers from Monday through Wednesday, with net outflows of -RM35.2 million on Monday, -RM40.8 million on Tuesday and -RM12.6 million on Wednesday,” it said.

However, they turned into net buyers on Thursday, picking up RM84.0 million worth of equities before the market took a break on Friday.

Meanwhile, local retailers turned into net buyers again at RM190.8 million after net selling -RM48.8 million in the previous week.

Although they started the week with a net selling of -RM12.3 million worth of equities, they had subsequently net bought RM63.2 million on Tuesday, RM70.1 million on Wednesday and RM69.9 million on Thursday, said MIDF.

Year-to-date, international investors have been net buyers for 24 out of the 37 weeks of 2022, with a total net inflow of RM7.93 billion, while local institutions were net sellers for 29 out of 37 weeks, with a total net outflow of -RM9.91 billion.

“Local retailers have been net buyers for 24 out of 37 weeks of 2022. Year-to-date, they have net bought RM1.98 billion,” it added. — Bernama