Trade Performance and Fund Flow - October 2022

▪ Overall market cap of Bursa Malaysia was up 3.6% M-o-M from its YTD low of RM1,602 bil in Sept to RM1,661 bil in Oct, as foreign and local funds rotated to defensive sectors amid headwinds at the global front and mixed reaction arising from surprised election announcement. Among the defensive sectors, market cap of Transport and Logistics rose by 8.3% M-o-M, followed by Health Care (7.5%) and Telco & Media (7.1%). 

▪ ADV growth for the month remained supported at above RM1.7 bil level. In Oct, overall ADV stood at RM1.71 bil (Sept: RM1.76 bil). While the daily ADV improved after the announcement of parliament dissolution on 10 Oct to pave way for GE15, overall trading sentiment appeared to be lukewarm than expected. Newsflow suggests that the market has possibly priced in the election for the past months, coupled with a possible hung parliament scenario which diluted investors’ interest in the theme. This brought the YTD ADV to RM2.07 bil. 

▪ Foreign selling pressure in local equities eased significantly M-o-M, recording a -RM0.6 bil net outflows in Oct (Sept: -RM1.6 bil). Despite the outflows, foreign investors remained net buyers of local securities at +RM6.0 bil YTD.  

▪ Meanwhile, local institutions remained as the only net buyers of local equities in Oct (+RM0.9 bil), with Financial sector saw the largest net buying interest. The net inflows in Oct narrowed the YTD cumulative net outflow to -RM8.3 bil. 

▪ Local retailers reverted to net sellers in Oct (-RM133 mil), registering its second month of outflow after July 2022. They remained as net buyers YTD with +RM2.16 bil.