Foreign Investors Continue to 'Drop' Local Stocks

<p>&nbsp;The end of the second quarter of 2023 saw continued foreign selling in local equities for the eleventh week in a row, pushing outflows to RM359.9 million last week.</p><p><br /></p><p>According to MIDF Research's weekly fund flow report, foreign investors have been sellers for 20 of the 26 weeks this year, bringing total net outflows to RM4.19 billion.</p><p><br /></p><p>The three sectors that saw the highest net foreign output flows were financial services (RM136.5 million), technology (RM72.9 million) and industrial products and services (RM86 million).</p><p><br /></p><p><br /></p><p>While the three sectors that recorded net foreign inflows were construction (RM71.9 million), real estate (RM16.4 million) and transport and logistics (RM6.2 million).</p><p><br /></p><p>MIDF Research added that local institutional investors remained net buyers for the fifth consecutive week amounting to RM278.3 million, and for 20 out of 26 weeks with total net inflows of RM3.73 billion.</p><p><br /></p><p>In terms of participation, there was a decrease in ADTV's average daily trading volume from retailers by 2% and local institutions by 7.3%, but foreign investors increased by 3.7%.</p><p><br /></p><p>Uncertainty is expected to continue to overshadow the local bourse especially ahead of the overnight policy rate (OPR) decision by Bank Negara Malaysia (BNM) this week.</p>