Did local institution inflows offset foreign net outflows enough?

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Local Institutional Inflows Did Not Fully Offset Foreign Net Outflows Last Week

Last week, net inflows from local institutions amounted to RM669.2 million, while foreign investors withdrew RM740.6 million. This indicates that while local institutional buying provided a substantial counterbalance, it did not entirely absorb the volume of foreign capital leaving the market.
Foreign Investors Continued Net Selling Trend

Foreign investors maintained their position as net sellers for the fourth consecutive week, withdrawing a total of RM740.6 million from Bursa Malaysia. The heaviest outflows were observed on Monday, with RM208.7 million exiting the market, followed by Wednesday (RM202.9 million) and Thursday (RM149.5 million). This persistent selling pressure from international funds highlights a continued cautious sentiment among foreign participants.
Local Institutions Provided Significant Buying Support

In contrast to foreign selling, local institutions emerged as net buyers across all trading days of the week. They cumulatively injected RM669.2 million into the market, with the largest inflow of RM224.1 million occurring on Monday. This strong buying activity from domestic institutions played a crucial role in mitigating the impact of foreign outflows.
Local Retailers Maintained Net Buying Position

Local retailers also contributed positively, marking their third consecutive week as net buyers with a total weekly inflow of RM71.4 million. While their contribution was smaller compared to local institutions, their consistent buying further supported market liquidity and absorbed some of the selling pressure.
Broader Context of 2022 Fund Flows

Looking at the year-to-date figures for 2022, foreign investors have been net buyers for a significant portion of the weeks (24 out of 39), with a cumulative net inflow of RM6.62 billion. However, this contrasts with local institutions, which have been net sellers for 30 out of 39 weeks, resulting in a substantial net outflow of RM8.89 billion for the year. Local retailers, on the other hand, have shown consistent net buying throughout 2022, with a cumulative net bought of RM2.27 billion.

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Did local institution inflows offset foreign net outflows enough?

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