Institutional Support Buoys Bursa
Local institutional investors remained net buyers on Bursa Malaysia for the fourth straight week, adding RM391.8 million in equities, according to MBSB Investment Bank’s weekly fund flow report.
Retail investors: Net sellers for a second week, with outflows of RM77.3 million.
Foreign investors: Continued to retreat for a seventh straight week, recording RM314.4 million net outflows.
Trading Activity – Weekly Breakdown
Foreign investors were net sellers most of the week, with the largest outflows on:
Wednesday (Aug 20): –RM209.4m
Monday (Aug 18): –RM152.9m
Tuesday (Aug 19): –RM74.8m
Thursday (Aug 21): smallest foreign outflow at –RM54.6m.
Friday (Aug 22): reversal, with RM177.2m net inflow, breaking the selling streak.
Sector Flows
Top 3 foreign inflow sectors:
Industrial Products & Services: +RM136.7m
Construction: +RM133.0m
Plantation: +RM56.8m
Top 3 foreign outflow sectors:
Telecommunication & Media: –RM154.2m
Consumer Products & Services: –RM145.2m
Financial Services: –RM119.8m
Market Participation
Average daily trading volume rose across the board:
Foreign investors: +10.0%
Local institutions: +14.5%
Retail investors: +8.6%
Investment Takeaways
Local Institutions Anchoring Market: Continued net buying offers near-term support to Bursa despite persistent foreign outflows.
Foreign Outflows Still a Headwind: Seven weeks of selling highlights ongoing global risk aversion toward Malaysian equities, though Friday’s inflow suggests selective bargain-hunting.
Sector Rotation Evident: Flows favor industrial, construction, and plantation sectors, while telecom, consumer, and financial names see persistent foreign selling.
Liquidity Improving: Broad-based rise in trading activity signals stronger participation ahead of key domestic earnings and macro data.
Bottom Line: Bursa Malaysia remains institutionally supported but foreign-driven headwinds persist. Investors should monitor whether Friday’s inflow marks the start of a reversal in foreign sentiment or just a short-lived respite.
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