KUALA LUMPUR, Jan 9 — It was a shortened trading week of four days on Bursa Malaysia last week due to the New Year’s Day replacement holiday on Monday.

MIDF Research said foreign investors began the first week of 2023 on a positive note by net buying RM72.3 million of Malaysian equities compared to a net selling of RM204.6 million during the final week of 2022.

Like its other Southeast Asian counterparts, the attraction of foreign inflows into Malaysia may be due to positive sentiments of a boost from China’s reopening.

Prime Minister Datuk Seri Anwar Ibrahim also laid his foot down that decision on interest rates was the sole prerogative of Bank Negara in which the government would not intervene, a move that lifted the confidence of investors.

"This came amidst questions directed by certain parties towards the central bank on setting the overnight policy rate (OPR),” the research house said in its Fund Flow Report for the week ended Jan 6, 2023.

It noted that foreign investors net sold RM32.3 million and RM22.6 million on Tuesday and Wednesday before picking up RM86.6 million and RM40.6 million on Thursday and Friday.

"The top three sectors which saw net inflows by foreign investors last week were Financial Services at RM99.2 million, Construction at RM11.1 million and Energy at RM5.3 million,” said the research firm.

The bottom three sectors with net outflows were Plantation at RM15.9 million, Telecommunications and Media at RM13.8 million and Utilities at RM6.7 million.

Local institutions turned set sellers for the week, net selling RM124.4 million.

They began the week net buying RM19.2 million on Tuesday, before net selling from Wednesday to Friday at RM6.1 million, RM91.9 million and RM45.6 million.

Local retailers remained the most optimistic, net buying every day, amounting to RM52.1 million for the week.

They net bought RM13.1 million on Tuesday, RM28.7 million on Wednesday, RM5.3 million on Thursday and RM5.0m on Friday.

In terms of participation, there was an increase in average daily trading volume among retail investors by 0.8 per cent while there were declines among local institutions and foreign investors by 17.6 per cent and 19.4 per cent. — Bernama