PETALING JAYA: Trading volume on Bursa Malaysia went on a dizzying heights with 26.65 billion shares worth RM9.05bil changed hands yesterday.
It was a record daily volume for the local bourse and the highest in the region.
Around the region, Singapore recorded 1.52 billion shares traded while the Philippines saw volume of 5.27 billion.
Meanwhile, Thailand and Indonesia recorded higher shares volume traded at 16.62 billion and 12.3 billion, respectively.
Rakuten vice-president of equity research Vincent Lau (pic) said the market saw profit-taking activity, especially in the rubber glove, technology and healthcare sectors that have been rallying for the past weeks.
He reckoned that investors, mainly retailers, were also shifting their interest into other counters such as penny stocks and gold-related counters.
The stocks that made it on the top volume list were registering volume of more than 1 billion shares yesterday.
Borneo Oil Bhd made it on the top volume list with 2.72 billion shares traded. It closed 50% higher at 7.5 sen yesterday following news that the company found gold deposits in one of its mining plots.
The gold rush on Bursa came after the global gold prices soared to more than US$2,000 per ounce, a historical high for the precious metal.
Other gold-related stocks such as Sabah-based Bahvest Resources Bhd, MUI Properties Bhd as well as jewellers Poh Kong Holdings Bhd and Tomei Consolidated Bhd had also gained investor interest this week.
“It was a healthy profit-taking activity. We expect the local stock market to continue its upward momentum, ” Lau said.
He said the market is unlikely to revisit its March lows despite the fresh wave of Covid-19 infections.
“Unless there is a second lockdown, which is unlikely due to the reduction in the number of mortality due to the virus as well as the advance stage of Covid-19 vaccines development, ” Lau said.
Meanwhile, former investment banker Ian Yoong said there has been an infusion of foreign retail investors in Bursa Malaysia since late July.
He expected the confidence in the stock market to continue for the next few months as investors are bullish on the market.
“Profit taking is part of the trading investment cycle and usually takes place every two and three weeks, ” Yoong said.
“The rally is still young and focus on sectors will be rotational. Investors are shifting their interest from rubber glove manufacturers to other sectors, ” he added.
According to several news reports, Goldman Sachs strategists said the market is underpricing the possibility of a Covid-19 vaccine, which could substantially boost the economy.
The strategists said the possible approved vaccine by the end of this year is underpriced by equity markets.
The benchmark index of Bursa Malaysia closed lower yesterday by 0.43 points or 0.66% at 1,578.14 along with other main markets due to the US-China trade tension.
Lau said the increasing number of retail investors in the local bourse is not only unique in Malaysia, but the zero-fee trading apps like Robinhood has fuelled investor interest in the stock market globally.
He said the low interest-rate environment that has fuelled inventors to look for high yielding assets has also buoyed the equity market.