Foreign inventors turned net buyers last week after six consecutive weeks

KUALA LUMPUR: Foreign investors returned as net buyers on Bursa Malaysia, recording RM127 million in net inflows for the week ended Sept 18, said BIMB Securities Research.

The firm said this was a reversal from the net outflow recorded in the previous week, with foreign buying seen in plantation counters such as SD Guthrie Bhd, despite a sharp outflow from RHB Bank Bhd.

Meanwhile, BIMB Securities said local institutions turned net sellers with a net outflow of RM368 million during the week.

"Local retail investors remained supportive, recording net buying of RM241 million, which helped cushion the weakness in the broader market," it said.

Foreign institutions were net buyers on three out of four trading days during the week, according to MBSB Research.

The largest inflow was recorded on Friday (RM56.5 million), followed by Monday (RM50.6 million) and Thursday (RM37.3 million).

At the sectoral level, BIMB Securities said technology emerged as the best-performing sector, rising 1.2 per cent week-on-week, supported by strength on Wall Street and optimism surrounding artificial intelligence-related stocks.

It noted that industrial and property were the key laggards, both declining 1.9 per cent week-on-week.

Tenaga Nasional Bhd, SD Guthrie Bhd, Westports Holdings Bhd, Gamuda Bhd and IJM Corp Bhd are the top five companies recording total net inflows of RM346.8 million, while RHB Bank Bhd, Malayan Banking Bhd, Press Metal Aluminium Holdings Bhd, Sunway Construction Group Bhd and Public Bank Bhd saw the largest net outflows, with a total of RM472.7 million.

"We stay defensive. Local institutions turned into net sellers, yet with foreigners turning into net buyers to establish a firm floor, the index likely grinds sideways near term.

"A broader tech rally beyond Wall Street spillover would be the key swing factor to turn more constructive.

"Until the benchmark stabilizes and pushes back toward our long-term target of 1,760, we prefer holding defensive large-caps and adding on weakness rather than chasing growth," it added.