Maybank, Top Glove most sold by foreign funds last week, says CGS-CIMB

Maybank, Top Glove most sold by foreign funds last week, says CGS-CIMB

KUALA LUMPUR (Nov 8): CGS-CIMB Securities expects investors to remain defensive ahead of the 15th general election (GE15) outcome on Nov 19, and said the FBM KLCI fell 0.6% week-on-week last week due to net selling by foreign investors on rate hike and GE15 concerns.

In a strategy note on Monday (Nov 7), the research house said foreign investors turned net sellers after one week as net buyers.

It said they net sold Malayan Banking Bhd (Maybank) and Top Glove Corp Bhd.

“Maybank was the largest net buy stock for local institutional and retail investors, and the largest net sell for foreign institutional investors.

“Top Glove was the second largest net buy stock for local institutional and the second largest net sell for foreign institutional investors.

“Lingkaran Trans Kota Holdings Bhd was the largest net buy for nominees, but the largest net sell for local institutional investors,” it said.

Meanwhile, CGS-CIMB said local institutional investors turned largest net buyers last week.

“They net bought Maybank and Top Glove.

“Retail investors turned net buyers last week, net buying Maybank and HSI-HES,” it said.

The research house said financial services, healthcare and plantation were the top short sectors last week.
Foreign shareholding

CGS-CIMB said foreign shareholdings of Malaysian equities rose 0.5 percentage points month-on-month to 20.6% as at end-September 2022 (versus 20.4% as at end-September 2021).

It said the declining trend in foreign shareholdings started in May 2018, specifically after GE14 on May 9, 2018, when Pakatan Harapan (PH) won a simple majority in Parliament, heralding the first change in government in Malaysia's history.

“Since then, the foreign shareholding level has fallen 4.1% pts from its peak of 24.2% in March 2018 to a trough of 20.1% in August 2022 due to political uncertainty.

“As of end-September 2022, foreign shareholdings stood at 20.6%, potentially due to the better performance of foreign-owned stocks against the general market.

“Year-to-date as of Nov 4, 2022, foreign investors have net bought RM5.7 billion of Malaysian equities (against a net sell of RM3.2 billion in 2021),” it said.

http://www.theedgemarkets.com/article/maybank-top-glove-most-sold-foreign-funds-last-week-says-cgscimb