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In Malaysia, the popularity of trading services has witnessed a remarkable surge.
Over the past 12 months, the increase in amounts in individual bank deposits totalled over RM870 billion, up RM33 billion from a year earlier”
KUALA LUMPUR, MALAYSIA, March 25, 2024 /EINPresswire.com/ -- In Malaysia, the popularity of trading services has witnessed a remarkable surge, with an average daily trading volume of RM2.1 billion in December 2023, up 28.6% from a year earlier.— Kar Yong Ang, the Octa financial analyst
2023 was a relatively challenging year for the Malaysian brokerage industry due to cautious market sentiment driven mainly by three key factors: aggressive monetary policy tightening by major central banks, the slowdown in China's economy, and the persistence and escalation of geopolitical risks between the U.S. and China, Russia and Ukraine, Israel and Hamas.
'Additionally, retail investors remain risk-averse amid an uncertain global outlook and a prolonged period of high interest rates. Over the past 12 months, the increase in amounts in individual bank deposits totalled over RM870 billion, up RM33 billion from a year earlier,' said Kar Yong Ang, the Octa financial analyst. 'Retail investors were also net sellers on Bursa Malaysia to the tune of RM800 million in the first 11 months of 2023,' he added.
However, despite the challenges in the industry, there have been tailwinds for the Digital Investment market since the second half of the year. The LEAP Market Transfer Framework support programme was launched in April, stimulating the local stock market. In July 2023, stamp duty on stock transactions listed on Bursa was reduced.
Additionally, a stable currency, domestic demand (aided by normalising tourism), and policies aimed at improving the investment climate acted as crucial catalysts for the financial markets. All these steps directly impacted the boost in trading volume. Thus, Bursa Malaysia saw its average daily volume (ADV) increase to RM2.7 billion at the end of December 2023, up 28.6% from a year earlier.
'Bursa Malaysia's average ADV in H2 2023 by the time the December 2023 data is available is likely to be RM2.7 billion, up from RM1.94 billion in H1 2023, and this trend will continue into 2024,' states Kar Yong Ang, the Octa financial analyst.
We see that tailwinds, accessibility, and ease of use of online trading platforms have made it increasingly convenient for Malaysians to participate in the stock market, Forex trading, and cryptocurrency exchanges. The number of those who have invested in Forex in Malaysia has grown by 41% over the past year, rising from 1.8 million to 2.5 million, correlating with the average daily trading volume growth dynamics on Bursa Malaysia. According to Octa research, this surge is attributed to a 59% increase in awareness of the Forex market and a 50% increase in trust in Forex brokers.
Today, more and more people feel well-informed about the Forex market, with a 59% increase in just one year. Octa attributes this paradigm shift to the efforts of Forex brokers, who continually provide their clients with in-depth market analyses and educational resources.
Given Malaysia's strong growth and rising confidence in trading, the outlook for Forex in 2024 looks promising. As more Malaysians become aware of Forex, the number of investors will increase as it becomes more accessible due to improved market conditions and a better investment climate.
ZECOMMS Agency
ZECOMMS Agency
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