CGS-CIMB: Bursa Malaysia Sees Sharp Increase In Millennial Retail Investors During Covid-19
Author Avatar

bursa malaysia 1

CGS-CIMB Research revealed that Bursa Malaysia has seen a 125% year-on-year increase in new central depository system (CDS) account openings in the first seven months of 2020. Of the total new accounts made, 78% belonged to investors aged less than 45 years old.

With this substantial spike, the research house said that millennials now make up 36% of the total CDS accountholders. To clarify, CDS accounts are mandatory accounts that must be opened before investors who wish to trade on Bursa Malaysia can carry out any transactions on the local bourse. Once registered, the investors’ trading activities, such as the crediting and debiting of their securities, will be conducted through the account.

“We view the increasing direct participation by millennials in the equity market and rising adoption of online trading as positive developments that will sustain retail trading activities,” said CGS-CIMB Research.

cgs cimb

According to the research house, the surge in interest could be indirectly attributed to the Covid-19 pandemic as the Malaysian public was obligated to stay home during the movement control order (MCO) period. Malaysians – some of whom enjoyed more liquidity due to the economic stimulus plans implemented by the government – were also likely attracted to the equity market due the lack of attractive investment alternatives that offer high returns with a declining interest rate.

Apart from noting the increase in millennial investors, CGS-CIMB Research also said that online trading by retail investors has grown from 50% to 60% in 2019, to 80% in July 2020. The top five sectors that they traded in between January to July 2020 were industrial products and services (21.6% of total retail traded value), healthcare (19.59%), technology (16.2%), consumer products and services (12.48%), and energy (7.34%).

(Source: The Star)

4 1 vote
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Investment Articles
Post Image
Historical EPF Dividend Rates
- 6th March 2023
Ever wondered how this year's EPF dividend rate compares to previous years? We got you covered with our historical 11-year chart!
Post Image
How Much Can You Earn Via The 4% Bonus Return Campaign On TNG GO+?
Alex Cheong Pui Yin
- 11th November 2021
Last week, Touch ‘n Go (TNG) eWallet rolled out a Bonus Return campaign under its GO+ investment feature, […]
Post Image
You Can Now Redeem Your ASNB Units Online Via myASNB
Jacie Tan
- 20th April 2020
Starting today, Amanah Saham Nasional Berhad (ASNB) unit holders can redeem their ASNB units online via the myASNB […]
Post Image
Active Cryptocurrency Traders Are Required To Declare Their Gains For Income Tax
Alex Cheong Pui Yin
- 6th January 2021
The Inland Revenue Board (LHDN) has clarified that cryptocurrency investors who actively trade their assets at the digital […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image