Malaysia continued to receive foreign portfolio inflows for the third consecutive month at RM3.0bn in Oct, bringing the accumulated total foreign holdings of Malaysia debt securities to RM254.0bn at end-October.
Looking into details, foreigners bought both MGS totalling RM2.7bn (Sep: -RM2.4bn; Aug: +RM3.1bn) and GII amounting RM2.7bn (Sep: +RM2.2bn; Aug: +RM3.2bn). This resulted in foreign holdings of Malaysian government bonds (MGS & GII) to increase by RM5.4bn to RM231.3bn as at end-Oct, which was equivalent to 25.9% of total outstanding. For MGS, foreign investors held RM192.0bn or 40.1% of total MGS outstanding as at end-Oct while foreign holdings of GII accumulated to RM39.3bn or 9.5% of total GII outstanding. Foreign holdings of discount instruments decreased by RM3.0bn to RM7.9bn as foreign investors sold both Treasury Bills (-RM2.7bn) and Islamic Treasury Bills (-RM0.3bn). Meanwhile, foreign holdings of PDS increased by RM0.5bn to RM14.8bn. As a result, in combined amounts (inclusive of short-term bills/notes and corporate bonds/sukuk), foreign holding levels in October 2021 were higher by RM3.0bn, bringing total foreign ownership of MYR bonds to RM254.0bn or 14.7%.
As at end-Oct 2021, foreign investors bought RM3.0bn of Malaysian bonds (Sep: +RM0.6bn; Aug: +RM6.6bn). Meanwhile, foreign investors remained net buyers in Oct with higher net inflow of RM1.6bn (Sep: +RM0.7bn; Aug: +RM1.05bn). Domestic institutions remained net sellers in Oct at RM1.9bn (Sep: -RM1.7bn; Aug: -RM1.5bn), whilst domestic retail investors bought RM0.4bn (Sep: +RM0.9bn; Aug: +RM0.5bn), their 28th sequential month of net buy since July 2019. As a result, Malaysia recorded a higher overall foreign portfolio inflow of RM4.6bn in Oct (Sep: +1.3bn; Aug: +RM7.65bn). Since the beginning of 2021, the cumulative bond inflows were RM31.1bn (Jan-Oct 2020: RM12.8bn) whilst foreign outflows from Malaysian equities amounted to RM2.2bn (Jan-Oct 2020: -RM23.1bn). This resulted in YTD 2021 net inflows of RM28.9bn (Jan-Sep 2020: -RM10.3bn).
Source: BIMB Securities Research - 9 Nov 2021
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024
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Created by kltrader | Aug 09, 2024