Foreign selling continues, but eases to RM214.4 mln

MIDF Amanah Investment Bank Bhd (MIDF Research) said in comparison to another three Southeast Asian markets, Malaysia recorded the least foreign net outflow while Indonesia experienced the biggest outflow.

"As the (local) market reopened on Monday last week, foreign investors bought RM101.58 million net of local equities, with retailers and local institutions as net sellers and net buyers at RM0.21 million and RM101.38 million, respectively.

"However, this inflow was negated as the week went by, with net selling gaining momentum, with external markets influencing investors’ decisions, whereby negotiation on a further stimulus in the US continued without any agreement reached," it said in a note today.

MIDF said cumulatively for October, foreign investors were net seller at RM479.5 billion, while to date, foreign investors net selling reached RM22.81 billiion.

"In terms of retail participation, last week saw retailers turned net buyers with RM446.5 million worth of equities last week, while local institutions net sold RM232.1 million during the same period.

"We believe that this suggests that retailers interest are starting to return," it added.

It said this was the second week where there was stronger net buying from retailers after three consecutive weeks as net sellers previously, which began on Tuesday with net buying of RM180.86 million and carried for the rest of the week.

"This is a potential signal for the return of buying appetite for retailers with bargain-hunting activities amid renewed interest in glove stocks with the surge in COVID-19 cases against a volatile Malaysian political backdrop.

"Net buying amounted to RM11.6 billion came from retailers thus far in 2020, while institution bought to the tune of RM10.9 billion," it said.