Malaysia records net foreign inflows last week, says MBSB IB

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Malaysia records foreign inflows last week

Highlights

Foreign institutions recorded net inflows of U.S.$381.3 million (RM1.55 billion) on Bursa Malaysia for the week ended Nov. 6, with net buying on every trading day.
The three leading sectors for net inflows were financial services at RM249.5 million, transportation and logistics at RM199.8 million, and construction at RM191.4 million, while technology recorded outflows of RM221.5 million.
Average daily trading volume increased, with retail investors up 5.6%, local institutions up 17.6% and foreign institutions up 16.8%; foreign investors remained net buyers in Malaysia as other Asian markets saw outflows.

This article was translated from the original. Read the original version by our correspondent here.

Fund flow patterns and preferred sectors

According to MBSB Investment Bank Bhd’s weekly fund flow report, cited by The Edge Malaysia, foreign institutions recorded net inflows of U.S.$381.3 million, equivalent to RM1.55 billion, on Bursa Malaysia for the week ended Nov. 6.

Foreign investors were net buyers on all five trading days, with the largest inflow recorded last Tuesday at RM152.4 million, followed by RM102.5 million on Monday, RM55.0 million on Thursday, RM40.6 million on Friday and RM30.8 million on Wednesday.

The three leading sectors for foreign net inflows were financial services at RM249.5 million, transportation and logistics at RM199.8 million, and construction at RM191.4 million. Meanwhile, the technology sector recorded the largest foreign net outflow at RM221.5 million, followed by plantations at RM126.7 million and industrial products and services at RM59.8 million.

Domestic investor activity and regional overview

Domestically, local institutions extended their net selling streak to two consecutive weeks, with outflows of RM621.0 million, while retail investors continued to be net buyers for an 11th consecutive week, recording inflows of RM239.7 million.

MBSB IB also said average daily trading volume increased across all investor categories, rising 5.6% among retail investors, 17.6% among local institutions and 16.8% among foreign institutions.

Across the region, foreign investors extended their net selling across eight Asian markets to six consecutive weeks, with total net outflows reaching U.S.$19.54 billion. Taiwan, South Korea, Thailand, Vietnam and Indonesia led the net selling, while India, Malaysia and the Philippines recorded net inflows.

In earlier coverage, we reported expectations that the technology and financial sectors would drive foreign fund inflows into Malaysia.

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