Bursa retail trading cht
AS Bursa Malaysia continues to rise on the back of the global market rally, one of the surprises for the local bourse is the level of participation among retailers, which are primarily local retailers.
Never have we observed the level of euphoria among retailers as their daily participation rate reached close to the 90% mark that of local institutional investors and more than double that of the foreign institutions’ trading values.
There have been several theories as to why we are observing this exuberance among retailers despite the shorter settlement period of “T+2”, which was implemented just over a year ago. Of course, the argument here is that most retail trades are not long-term holders and the bulk of the daily trading are either day trades or at best settled within the two trading days as required by the trading rules.
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