EMPLOYEES Provident Fund (EPF) topped the list of institutional buyers on Bursa Malaysia in the second quarter of 2022 (2Q22)while its counterpart Permodalan Nasional Bhd (PNB) was the top seller among institutional players.

EPF dealt with stocks worth US$373.9 million (RM1.76 billion) in the three months period followed by US-based BlackRock Fund Advisors (US$62.7 million) and The Vanguard Group (US$56.9 million).

On the sell side, PNB led the list with stocks worth US$605.9 million trailed by Principal Islamic Asset Management Sdn Bhd (US$43.2million) and Candriam Belgium SA (US$34.5 million).

Sharing the figures in a recent update, Bursa Digital Research noted that outflow from domestic investors narrowed to US$96 million in 2Q22 versus US$501.2 million in the previous quarter. Net inflow from the UK and Ireland slowed to US$85.3 million in the quarter compared to US$230.9 million in 1Q22.

Overall, foreign interest in Malaysian equities was net positive, the report said.

Based on S&P Global Market Intelligence’s sample of around 3,000 institutions and funds, it said net inflow from these funds climbed 17.2% QoQ to US$301.5 million in 2Q22 (1Q22: US$257.2 million), led primarily by North American investors. They net bought US$336.1 million of local equities during the quarter, representing a 72.8% increase from US$194.5 million in 1Q22.

In the domestic market, the report said cumulative capital outflow from nine government-linked investment companies (GLICs) narrowed to US$198.2 million in 2Q22 from US$633.9million in 1Q22, as EPF and Retirement Fund (Inc) (KWAP) turned net buyers. In the same quarter, outflow from PNB intensified to US$605.9 million versus US$230.6 million in 1Q22.

At the industry level, outflow was most significant in the consumer goods industry (US$649.11 million) since 1Q22. However, the momentum has slightly slowed by 12.4% QoQ as KWAP turned net buyer of the industry. Basic materials recorded the largest inflow in 2Q22 (US$213.66 million), followed by financials (US$177.98 million) and industrials (US$115.29 million).

GLICs turned net purchasers of the financial industry, led mainly by EPF (US$209.03 million), KWAP (US$20.13 million) and PMB Investment Bhd (US$0.38 million). During the quarter,  disposal of financial stocks by PNB was lowered by 86.7% QoQ to US$19.90 million versus US$150.46 million, while Khazanah Nasional Bhd net sold US$31.66 million of CIMB Group Holdings Bhd.

Inflows from institutional investors, minus ex GLICs, generally slowed to US$98.88 million from US$132.57 million in 1Q22 as Principal Islamic Asset Management Sdn Bhd turned net seller (US$43.2 million) in 2Q22.

The report noted that inflows were primarily led by stronger buying momentum from large local institutions, namely Public Mutual Bhd, Eastspring Investments Bhd and Kenanga Investors Bhd with net inflows of over US$45 million each during the quarter.

Inflows from Public Mutual was mainly driven by its significant net purchase in healthcare, specifically Top Glove Corp Bhd (US$52.42 million) which topped in terms of net inflow in 2Q22.

Institutional funds turned net sellers of technology industry (US$35.2 million) in 2Q22, led mainly by Principal Islamic Asset Management (US$40.62 million). Technology counter that topped institutional net outflow was Inari Amertron Bhd (US$24.02 million). 

Basic materials industry saw

institutional fund flow trend reversed in 2Q22, to net outflow of US$14.88 million, after Press Metal Aluminium Holdings Bhd experienced significant disposal in 2Q22 (US$27.49 million).

Meanwhile, the consumer goods industry saw the largest net institutional buying interest (US$69.5 million), particularly from Principal Islamic Asset Management and Kenanga Investors. Counter with the highest net buy was Kuala Lumpur Kepong Bhd (US$27.29 million). — TMR

• This article first appeared in The Malaysian Reserve weekly print edition