Malaysia’s Stock Exchange Sees Increased Participation from Retail Investors amidst COVID-19 Lockdown

Statistics issued by Bursa Malaysia on the 15th of July 2020 showed market participation by local retail investors at 41.4%, compared to 25% mid-June 2019. With the on-set of COVID-19 and more foreign investors pulling out, participation by retail investors increased 62% compared to the 2019 average, according to Kenny Yee, Head of Research at Japan-based Rakuten.

Other factors that contributed to the boom in retail investment were a 1,200 point decline in the Kuala Lumpur Composite Index’s (KLCI), following the announcement of the imminent movement control order (MCO). According to a local stock-broker (affiliated with the investment arm of a local bank), investors who were looking at alternative investments, saw...