Local Institutions Maintain Net Buying Streak on Bursa for 10th Week
Sustained Support from Local Institutions
Local institutions extended their support for Bursa Malaysia for the 10th consecutive week, with net purchases of domestic equities totalling RM416.9 million, according to MIDF Amanah Investment Bank Bhd (MIDF). This marks 27 consecutive trading days of net buying by local institutions.
Contrasting Trends among Local Retailers
In contrast, local retailers turned net sellers of domestic equities, recording net disposals of RM185 million after a brief stint of net buying in the prior week.
Average Daily Trading Volume Declines
The average daily trading volume (ADTV) declined across the board. Foreign investors saw the sharpest drop, with ADTV contracting by 60.2%, while local retailers and institutions recorded declines of 30.6% and 38.9%, respectively.
Foreign Investors Continue Net Selling Streak
Foreign investors continued their net selling trend for the 10th straight week, the longest streak this year, with net disposals totalling RM231.9 million. They offloaded equities daily during the shortened trading week, attributed to the Christmas holiday on Wednesday.
Sectors with Notable Net Flows
Sectors that saw the highest net foreign inflows were property (RM36.6 million), industrial products and services (RM31.2 million), and financial services (RM29.6 million). On the other hand, the sectors with the largest net foreign outflows were utilities (RM119.5 million), construction (RM88.5 million), and healthcare (RM68.1 million).
Foreign Investors Sell Equities in India
Foreign investors also continued to net sell equities in India for the third consecutive week, totalling US$600.4 million. India, the second-largest sugar producer in the world, may see its sugar production fall below consumption levels for the first time in eight years due to the drought in 2023 and excessive rainfall this year.
Indian Government’s Plans to Boost Economy
The Indian government is considering cutting individual taxes in the upcoming budget in February 2025 to boost consumption in its slowing economy and provide relief to the middle class.
Conclusion
In conclusion, local institutions have maintained their net buying streak on Bursa for the 10th consecutive week, while foreign investors have continued their net selling trend. Local retailers have turned net sellers, and the average daily trading volume has declined across the board.
FAQs
* What was the net amount of domestic equities purchased by local institutions?
* RM416.9 million
* How many consecutive trading days have local institutions been net buyers?
* 27 days
* What was the net amount of domestic equities sold by local retailers?
* RM185 million
* How many consecutive weeks have foreign investors been net sellers?
* 10 weeks
* What is the total amount of net foreign outflows from India?
* US$600.4 million