KUALA LUMPUR, Jan 11 — Bursa Malaysia Bhd’s trading activities are expected to remain vibrant this year, driven mainly by sustained retail participation and sector rotation to cyclical sectors, said RHB Investment Bank Bhd.
The investment bank said the exchange’s securities average daily value (SADV) and derivatives average daily volume (DADV) would stay elevated in 2021, albeit moderating from last year, on still-buoyant retail participation and sector rotation to cyclical sectors would sustain trading.
“Our 2021 SADV expectation of RM3.15 million assumes a 26 per cent year-on-year normalisation from the extraordinary 2020, but is still meaningfully higher than pre-Covid-19 trading levels, which is 30 per cent higher than 2017-2019 average SADV,” it said in a research note today.
Bursa Malaysia concluded the first trading week of 2021 with an SADV of RM5.36 billion with total trading value of RM26.79 billion.
RHB Investment Bank estimated that total trading value and SADV in the fourth quarter of 2020 remained strong at RM319 billion and RM4.98 billion, respectively.
“Although the SADV was 14 per cent lower quarter-on-quarter than the third quarter’s record high, it still registered a respectable 143 per cent year-on-year growth, smashing concerns of drying liquidity, especially among retail investors, post-moratorium,” it added. — Bernama
