Why did foreign investors sell RM204.6m in the final trading week of 2022?

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Foreign Investors Engaged in Profit-Taking Amidst Shortened Trading Week

Foreign investors offloaded RM204.6 million in equities during the final trading week of 2022. This net selling occurred despite an initial period of net buying at the start of the week, which was shortened due to the Christmas holiday. The shift to net selling was primarily driven by profit-taking activities on Thursday and Friday of that week.
Profit-Taking Drove Net Outflows

The trading week commenced with foreign investors exhibiting positive sentiment, marked by net buying of RM10.1 million on Tuesday and a substantial RM99.2 million on Wednesday. However, these inflows were insufficient to offset subsequent profit-taking. On Thursday, RM9.8 million worth of shares were sold by foreign investors, followed by a more significant RM304.1 million in sales on Friday, culminating in the week's net selling figure.
Sectoral Trends Reflected Outflows

Within the market, certain sectors experienced more pronounced foreign outflows. The plantation sector saw the largest net outflow, amounting to RM64.7 million. This was followed by the industrial products and services sector, which recorded an outflow of RM57.1 million, and the financial services sector, with RM46.0 million in net foreign selling.
Sectors Attracting Inflows

Conversely, some sectors did experience net foreign inflows during the same period. The healthcare sector attracted the most foreign investment, with net inflows totalling RM16.5 million. The technology sector followed, gaining RM12.3 million in foreign capital, and the transportation & logistics sector secured RM7.2 million in net foreign inflows.

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Why did foreign investors sell RM204.6m in the final trading week of 2022?

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