Trade Performance and Fund Flow - October 2023

▪ Overall market capitalisation as at end-Oct improved marginally to RM1,762 bil (+0.04%) against the cautious sentiment amid geopolitical tensions in the Middle East and USD strength. The resilience was attributed to local institutions which turned significant net buyers of local equities which recorded the highest monthly net inflow of +RM2.36bil since the pandemic in Mar 2020 (+RM5.21bil). Overall sentiment was also supported by the policy and budget clarity from the RM393.8 billion federal budget announcement on 13 Oct.  

▪ Strong backing from local funds pushed KL Financial Index (KLFIN) up by 2.3% MoM, reversing from its contraction last month to become the highest gain among all 13 sectors. Conversely, KL Property Index (KLPRP) retraced by 3.2% MoM, chartered by profit taking activities after 4 consecutive months of growth. Similarly, KL Energy Index (KLENG) dropped by 2.8% MoM after 3 consecutive months of increase as crude oil prices fell below USD90 per barrel mark. On a positive note, KL Construction Index (KLCON) edged higher by 0.9% MoM, marking its 4th consecutive month of gain. 

▪ Oct’s ADV slipped 12.3% MoM to RM1.98 bil from its 8-month high of RM2.26 bil in Sep, as market has speculated the impact from federal budget prior to the announcement. This brought  the YTD ADV to RM2.02 bil. Trading activities in Oct moderated across all investor segments, with local institutions (-13.2% MoM) contributing the largest contraction in ADV. 

▪ Foreign investor reverted to net selling position in Oct (-RM2.18bil) after net purchased for the past 3 months while local retailers remained net sellers with a net outflow of -RM114.43mil (Sep: -RM95.10mil).YTD, local funds remained the largest net buyers at +RM4.56bil, supporting the RM4.15bil YTD outflow by foreign investors.