KUALA LUMPUR, July 7 (NNN-BERNAMA) — The local stock market saw higher participation from retail investors for the first six months of this year against the same period last year, according to Bursa Malaysia Bhd’s Chief Executive Officer Datuk Muhamad Umar Swift.
The increase in their investments, particularly in cash investment, has been significant for the period Dec 31, 2019 to June 6, 2020 compared with Dec 31, 2018 to June 6, 2019.
“They have 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 to enjoy better returns via their stock market investments.
On the outlook for the second half of this year, Muhamad Umar said participation from retail investors will depend on the expectations on earnings, dividends and growth.
The FBM KLCI, has been the best performing index in the Asean region, declining by only 5.5 per cent in the first half of 2020 compared with other regional bourses.
On the performance of the stock exchange in the second half of this year, he said its movements will depend on how the COVID-19 situation develops, adding that there were also worries about a possible second wave of the pandemic.
He was also optimistic that foreign funds, which have been staying away from the local stock market for about two years, would return once earnings improve.