The retail investor challenge






Local participation: The Bursa Malaysia building in Kuala Lumpur. Bursa data for the month of May this year shows that local retailers only made up 16.9% of the total value traded.

Local participation: The Bursa Malaysia building in Kuala Lumpur. Bursa data for the month of May this year shows that local retailers only made up 16.9% of the total value traded.

ONE of the more startling facts about Bursa Malaysia is the decline in retail participation in the stock market in recent years. An oft-cited figure is that retail participation in Bursa Malaysia has stood at around 20% for some time now.

To be more specific, data from Bursa Malaysia for the month of May this year shows that local retailers only made up 16.9% of the total value traded, although in volume terms, it was higher at close to 40%.

However, it is the value figure that is more relevant, as it indicates the wealth-creation that could be taking place. Also, the calculation of a market’s velocity uses the value traded and not the volume.

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