How did local institutions shift from net buyers to net sellers?

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Local Institutions Shift to Net Sellers After Brief Buying Period

Local institutions transitioned back to being net sellers on Bursa Malaysia, recording net sales of RM25.1 million in the week analysed, following a brief two-week period where they had been net buyers. This shift occurred despite specific days within the week showing net buying activity.
Weekly and Daily Transaction Patterns

During the week in question, local institutions demonstrated mixed trading behaviour. They were net sellers of RM60.4 million on Tuesday and RM48.5 million on Thursday. However, these outflows were partially offset by net purchases of RM47.9 million on Wednesday and RM36 million on Friday, leading to the overall net selling position for the week.
Year-to-Date Performance

Looking at the year-to-date figures up to the 28th week of 2022, local institutions have predominantly been net sellers. They have recorded net selling activity in 21 out of the 28 weeks, resulting in a cumulative net outflow of RM7.84 million. This pattern indicates a sustained trend of divestment over the year.
Broader Market Context

The shift in local institutional sentiment occurred within a broader context of foreign fund outflows from Bursa Malaysia, which continued for the sixth consecutive week. While the value of these foreign outflows reduced to RM28 million for the shortened trading week, it highlights a general cautiousness among institutional investors. The global market sentiment was also marked by gloomy economic indicators, including a 41-year high US consumer price index and disappointing second-quarter corporate earnings, which likely contributed to negative investor sentiment.

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How did local institutions shift from net buyers to net sellers?

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