Bank Negara: Retail investors purchased RM113.1b of equities in 1H

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

KUALA LUMPUR: The surge in retail participation in the equities market in the first half of 2020 was due to some households using excess cash reserves from relief measures under the moratorium, and also their savings, to invest in the stock market.

Retail investors purchased RM113.1bil worth of listed shares but these purchases were were not funded by borrowings, Bank Negara Malaysia said in its “Financial Stability Review – First Half 2020” report issued on Wednesday.

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 this period.