Retail investors surging, a bonanza to Malaysia

KUALA LUMPUR 14 July - As of end of June, Malaysia’s retail investor contributed to 29% of the total shares value after a pull back in March.

The performance is in fact a favor to the country’s stock market and no sign of risk.

Securities Commision of Malaysia Executive Chairman, Syed Zaid Albar in an interview with Bloomberg Television said, the recent surge has helped the activities and vibrancy of the market.

“We are happy to have the retail investors back and in the market,” he said.

After being through shrinking low in March, Malaysia’s benchmark stock index since that has rebounded more than 30%.

With the government implementing the stimulus package and interest rate cuts to tackle the impact of COVID-19, small investors flocked to the battered stock market sending trading volumes to a record high.

Apart from that, Malaysia’s capital markets regulator also introduced many proactive courses  including a temporary ban on short-selling to ease stock volatility.

“Although it might be too early for us to say that the increase in retail participation is a good sign of their confidence in the companies yet, it is definitely a good sign,” he noted. 

Until the end of June, Malaysia saw RM6.4 billion of shares sold to local retail investors which marked up to 29% of the total shares value in the market from 21% of the whole year.  - DagangNews.com