KUALA LUMPUR: Local institutions have demonstrated unwavering support for Bursa Malaysia, maintaining a buying streak for the tenth consecutive week with net purchases of domestic equities amounting to RM416.9 million.
According to BERNAMA News Agency, MIDF Amanah Investment Bank Bhd (MIDF) reported in its Fund Flow Report for the week ending December 27 that local institutions were net buyers every trading day last week. This activity marks an impressive 27 consecutive trading days of net buying, showcasing institutional confidence in the Malaysian market.
Conversely, local retailers turned net sellers of domestic equities, with net disposals reaching RM185.0 million after a brief period of net buying the previous week. The average daily trading volume (ADTV) experienced a decline across the board, with foreign investors seeing the most significant drop of 60.2 percent. Local retailers and institutions recorded respective declines of 30.6 percent and 38.9 percent.
Foreign investors continued their net selling trend for the tenth consecutive week, marking the longest streak of the year, with net disposals totaling RM231.9 million. The shortened trading week, due to the Christmas holiday on Wednesday, saw foreign investors offloading equities daily. The largest foreign net outflow occurred on Monday at RM118.5 million, followed by Tuesday with RM52.1 million, Friday with RM36.3 million, and Thursday with RM25.0 million.
MIDF noted that sectors benefiting from the highest net foreign inflows were property (RM36.6 million), industrial products and services (RM31.2 million), and financial services (RM29.6 million). Conversely, utilities (RM119.5 million), construction (RM88.5 million), and healthcare (RM68.1 million) experienced the largest net foreign outflows.
Additionally, foreign investors continued to net sell equities in India for the third consecutive week, with total disposals reaching -USD600.4 million. Amid this financial activity, India, the world’s second-largest sugar producer, faces a potential decrease in sugar production below consumption levels for the first time in eight years. This is attributed to a drought in 2023 coupled with excessive rainfall this year.
Furthermore, the Indian government is reportedly considering individual tax cuts in the upcoming February 2025 budget. This measure aims to boost consumption in its slowing economy, providing relief to the middle class.