Trade Performance and Fund Flow - September 2023

▪ Overall market capitalisation slightly moderated to RM1,761 bil in Sep from its YTD high of RM1,776 bil in Aug, with a mixed performance across sectors. KLFIN contracted by 2.9% on lower net interest margins, while profit taking activities in KLUTL after 2 months of growth sent the sector to a 1.3% contraction. KLTEC declined by 1.8% MoM on broad-base weaker earnings. Nonetheless, downside was partly cushioned by the KLENG which rose 7.0% MoM on the back of elevated commodity prices underpinned by tight supply situation. KLCON continued to expand for the third consecutive month albeit at a slower rate of 1.8% (7.1% in August). KLPRP’s growth slowed to 0.9%, versus 12.3% in August.

▪ ADV improved for the third consecutive months to 7-month high of RM2.26 bil in Sep (4.2% MoM).  The MoM improvement was mainly led by Financial, Energy and Property sectors, supported by more active trading by foreign and local institutional investors. On a closer look, ADV of 4 sectors recorded YTD high, including construction with 21.2% MoM growth, Property (13.5%), REITs (20.9%) and Utilities (16.1%). This brought the average 9-month ADV to RM2.02 bil.  

▪ Foreign inflow strengthened significantly to +RM674mil in Sep (Aug: +RM141mil), extending their net buying interest for the third consecutive months. This narrowed YTD foreign net outflow to RM1.96 bil. Foreign ADV also reached YTD high of RM744 mil in Sep. 

▪ On the other hand, local institution reverted to net sellers with -RM582mil outflow in Sep, bringing YTD inflow to +RM2.20 bil while outflow from local retailers narrowed to -RM95 mil (Aug: -RM432mil).