KUALA LUMPUR, July 7 — The local stock market saw higher participation from retail investors recently compared to a year ago, according to Bursa Malaysia Bhd chief executive officer (CEO) Datuk Muhamad Umar Swift.
He said, there is a significant increase in the participation of retail investors from December 31, 2019 to June 6, 2020 as compared to December 31, 2018 to June 6, 2019, particularly in cash investment.
“They’ve not been borrowing to invest, which showed reallocation from lower-yielding investment back to the stock market,” he told a press conference at Invest Malaysia 2020 today.
Hence, he said, the bourse anticipated retail investors would enjoy better returns via their stock market investments.
Muhamad Umar said for the second-half outlook, the participation from retail investors will depend on the expectations on earnings, dividends and growth.
The FBM KLCI index, has been the best performing index in Asean, declining by only 5.5 per cent in the first half of 2020 compared to other bourses in the region.
On the second half 2020 performance, he said, the movement will depend on the development of Covid-19, amid worries over the second wave of the pandemic.
He also reckoned that foreign fund, which has been staying away from the local stock market for about two years, would return once earnings improve. — Bernama
