In Bursa Malaysia: Local Institutions Sustain Buying Streak & New Subsector Classification

Local institutions on Bursa Malaysia continued their net buying streak for the 12th consecutive week, recording RM281.9 million in net purchases during the week ending January 10, according to MIDF Amanah Investment Bank Bhd. However, this marked a decline from RM304.0 million in net purchases the previous week.

MIDFs Fund Flow Report highlighted that local institutions maintained their buying momentum for 36 consecutive trading days. Retail investors also shifted back to being net buyers, contributing RM220.3 million in net inflows after two weeks of net selling.

Trading activity on Bursa Malaysia surged across all investor categories. Average daily trading volume (ADTV) increased significantly, with foreign investors up by 30.8 per cent, local institutions by 29.8 per cent, and retail investors by 19.8 per cent. Despite this uptick, foreign investors extended their selling streak to 12 weeks, recording a net outflow of RM502.2 million.

Foreign outflows peaked on Thursday at RM162.3 million, with smaller outflows ranging between RM56.1 million and RM111.5 million on other trading days. Construction and real estate investment trusts (REITs) emerged as the sectors with the highest net foreign inflows, at RM271.1 million and RM20 million, respectively. On the other hand, utilities, financial services, and transport and logistics sectors experienced the largest net foreign outflows, amounting to RM142.7 million, RM130.0 million, and RM92.5 million, respectively.

Meanwhile, Bursa Malaysia announced the introduction of a renewable energy (RE) subsector under its energy and utilities classifications to provide better categorisation for public-listed companies (PLCs) in the RE space. This move is aimed at giving investors clearer insights into the rapidly growing renewable energy sector.

The stock exchange operator explained that this granular classification would allow investors to conduct deeper analyses of growth potential and challenges within the RE industry. This enhanced visibility is also expected to attract sustainability-focused investors and boost funding opportunities for RE companies to scale operations, drive innovation, and improve efficiency.

Bursa Malaysia CEO Datuk Muhamad Umar Swift stated that the introduction of the RE subsector reflects the exchanges adaptability in meeting the rising demand for environmentally conscious investments. He added that this initiative aligns with the exchange's broader mission to create investment opportunities and drive value creation, underscoring its commitment to supporting industries pivotal to a greener and more sustainable future for Malaysia.

The RE subsector classification encompasses PLCs involved in providing equipment and services for renewable energy production or those generating and distributing electricity through renewable sources. Effective from January 13, 2024, the updated classification covers 13 PLCs, including BM Greentech Bhd, Cypark Resources Bhd, Kinergy Advancement Bhd, Mega First Corp Bhd, Nuenergy Holdings Bhd, Pekat Group Bhd, Samaiden Group Bhd, Solarvest Holdings Bhd, and Sunview Group Bhd.