KUALA LUMPUR, April 22 — The net purchases by local institutions on Bursa Malaysia hit a six-year high last week, totalling RM1.79 billion versus the RM430.7 million worth of domestic equities sought after in the week before, said MIDF Research.

The amount was the highest since February 2018, according to its latest weekly Fund Flow Report.

The research house said this was the local institutions’ eighth consecutive week of net buying and in terms of days, they had been net buying for 11 straight trading days.

Nevertheless, like most of its Asian counterparts, Bursa Malaysia recorded massive net selling last week, amounting to RM1.59 billion, the highest weekly net outflow in four years, when the country went into movement control order (MCO) in March 2020.

This was the eighth consecutive week of net selling in Malaysia by foreign investors.

“They net sold every day last week and have been net selling Malaysian equities for nine straight trading days. The only sector with a net foreign inflow last week was telecommunication and media (RM9.3 million), while the top three sectors that recorded the highest net foreign outflows were financial services (RM425.8 million), consumer products and services (RM308.9 million), and industrial products and Services (RM206.3 million),” it noted.

MIDF Research said foreign investors turned extra cautious amid rising geopolitical conflicts, apart from concerns that interest rates in the US will remain higher for longer.

As for local retailers, they also remained net sellers for the sixth consecutive week, with net sales worth RM195.8 million.

They net bought RM59.5 million on Monday but were net sellers for the rest of the week.

In terms of participation, the average daily trading volume (ADTV) saw increases across the board, led by local institutions (30.2 per cent), followed by foreign investors and local retailers at 28.4 per cent and 19.5 per cent respectively. — Bernama

https://www.malaymail.com/news/money/2024/04/22/equity-buying-by-local-institutions-hit-six-year-high-supporting-bursa-amid-major-outflows/130140