Trade Performance and Fund Flow - March 2023

▪ Total market capitalisation as at end-March 2023 moderated to its 4-month low of RM1,708 bil (Feb: RM1,730 bil) as contagion fears over the turmoil in the U.S. regional banking sector dampened overall market sentiment. The impact was partly cushioned by Bank Negara Malaysia’s decision to maintain the overnight policy rate (OPR) at 2.75%, coupled with the strengthening of Malaysian Ringgit against the US Dollar at 4.41 at end of Mar (from 4.49 at end of Feb) which attributed to the broad-based softening of USD dollar amid risk-off sentiment despite another 25bps rate hike by U.S. Federal Reserve. 

▪ March’s ADV slipped 16.0% MoM to RM2.03 bil from its 12-month high of RM2.42 bil in Feb, bringing the YTD ADV to RM2.14 bil. Trading activities in March moderated across all investor segments, with local institutions (-20.5% MoM) contributing the largest contraction in ADV.  ▪ Foreign net selling of Malaysian equities reached the highest level since Sept 2022, recording a net outflow of -RM1.35 bil in Mar (Feb: -RM168 mil), largely due to outflows from the Financial sector. This brings the YTD outflows to -RM1.87 bil. 

▪ Meanwhile, local institutions reverted to net buying in Mar (+RM1.19 bil), resuming its monthly inflow trend since Sept 2022. YTD, this segment of investors has contributed a total of +RM1.57 bil in inflows. 

▪ Inflows from local retailers slowed to +RM73 mil in Mar (Feb: +RM428mil), bringing YTD inflows to +RM94 mil.