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KUALA LUMPUR (Nov 9): Foreign sales of local shares in Bursa Malaysia came to a halt last week as offshore investors bought RM115.14 million, compared with the download of RM190.04 million the previous week, according to MIDF Research.
In its weekly cash flow report today, MIDF said this was the first net inflow after seven weeks of consecutive net sales by foreign investors.
“This potentially marked a change in sentiment after an expansive budget that strives to rejuvenate the Malaysian economy.
“When the market reopened on Monday last week, foreign investors sold RM104.42 million net of local shares, with local retailers and institutions as net buyers at RM1.39 million and RM103.03 million respectively,” he said.
However, MIDF said that this exit was reversed as the week drew to a close, and net purchases were gaining momentum.
He said the outcome of the US Senate and presidential elections influenced investors’ decisions.
MIDF said that the largest inflow occurred last Friday at RM240.43 million, adding that the other net inflow took place last Thursday at RM140.90 million.
“So far in 2020, net sales by foreign investors have reached RM22.88 billion in shares in Bursa.
“Compared to three other Southeast Asian markets that we tracked last week, Indonesia saw the highest net foreign inflow, while Thailand experienced the highest outflow compared to the others,” he said.
MIDF said that in terms of retail share, last week it saw retailers as net buyers with shares worth RM 26.7 million, while local institutions sold RM 141.8 million during the same period.
He said that retailers as net shoppers in Bursa continued their streak in the fourth week since early November, although it was a moderate decline as sentiment of caution clouded the momentum ahead of the Budget 2021 announcement last Friday.
“We can expect the buying momentum from retailers to continue next week, indicating a positive affirmation from Malaysia’s fiscal directions for 2021,” he said.
So far in 2020, MIDF said, net purchases worth RM11.69 billion came from retailers, while institutions bought RM10.82 billion.
“In terms of participation, retail investors registered a weekly decrease of 1.49% in the average daily commercial value (ADTV), while foreign investors experienced a decrease in ADTV of 11.25% and local institutions of -16 99%, ”he said.
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