Trade Performance and Fund Flow - February 2023

▪ Total market capitalisation of Bursa Malaysia as at end-Feb 2023 moderated to RM1,730 bil (-2.3% MoM) from its 8-month high of RM1,770 bil in Jan 2023 as the overall market sentiment turned cautious ahead of the retabling of Budget 2023 on 24 Feb 2023. Additionally, the Ringgit weakened against the US Dollar from 4.27 at the end of Jan to 4.49 at the end of Feb, which was attributed to a broad-based strengthening of the USD. Furthermore, key regional and global markets also experienced pullback, partly due to concerns about the Federal Reserve's rate hike path. 

▪ ADV for the month improved by 19.3% MoM to RM2.4 bil, highest in 11 months. Higher trading participation were seen across all investor segment, led by foreign institutions ADV which rose by 46% MoM. Notably, daily ADV jumped to RM4.0 bil on 28 February 2023 as the revision to MSCI Emerging Market Index came into effect (1 addition: GAMUDA, 1 deletion: HARTA). This brought the YTD ADV to RM2.2 bil (2022: RM2.1 bil). 

▪ Foreign outflows from local equities improved in Feb with a net outflow of -RM168 mil (Jan: RM348 mil), narrowing the YTD outflows to -RM517 mil. ▪ Meanwhile, local institutions turned net sellers in Feb after 5 consecutive months of net buying, with -RM668 mil net outflows (Jan: +RM1,049 mil), reducing YTD inflows to +RM381 mil. 

▪ Local retailers were the only net buyers in February, as they purchased a net total of RM428mil (compared to net selling of -RM406mil in Jan), with the Financial sector being the main contributor to inflows. YTD, this segment of investors has contributed a total of +RM21 mil of inflow.