Foreign investors net buyers in Bursa’s opening week for 2023

FOREIGN investors began the first week of 2023 on a positive note by net buying RM72.3 million of Malaysian equities, as compared to a net selling of RM204.6 million during the final week of 2022, according to numbers tracked by a local equity research house.

Like its other Southeast Asian counterparts, the report noted that the attraction of foreign inflows into Malaysia may be due to positive sentiments of a boost from China’s reopening.

Prime Minister Datuk Seri Anwar Ibrahim also laid his foot down that decision on interest rates was the sole prerogative of Bank Negara in which the government would not intervene, a move that lifted the confidence of investors. This came amidst questions directed by certain parties towards the central bank on setting the overnight policy rate (OPR), according to the MIDF Research fund flow report for the week ended Jan 6, 2023.

It noted that foreign investors net sold RM32.3 million and RM22.6 million on Tuesday and Wednesday before picking up RM86.6 million and RM40.6 million on Thursday and Friday respectively.

The top three sectors which saw net inflows by foreign investors last week were financial services at RM99.2 million, construction at RM11.1 million and energy at RM5.3 million. The bottom three sectors with net outflows were plantation at RM15.9 million, telecommunications and media at RM13.8 million and utilities at RM6.7 million.

The report noted that local institutions turned set sellers for the week while local retailers remained the most optimistic, net buying every day, amounting to RM52.1 million for the week. – TMR / pic TMR File