Malaysia: Surge in retail investors

• Oct 15, 2020

KUALA LUMPUR: There was a significant increase in retail participation in the equity market, which saw retail investors buying a total of RM113.1bil worth of listed shares in the first half of 2020.

Bank Negara said its surveillance indicated that the surge in retail participation has not been funded by borrowings.

Loans disbursed and outstanding for the purchase of shares, including margin financing, remained low and broadly stable during the period.Such loans continue to account for a small share of overall household debt (0.5%) and bank lending to households (0.6%).

“There have been no discernible changes in the profile of household borrowers with share margin facilities, as they remain mostly within the higher-income segments with larger financial buffers, ” it said.

Source: https://www.thestar.com.my/business/business-news/2020/10/15/surge-in-retail-investors