DESPITE dire news headlines, more Malaysian retail investors are buying stocks that they feel would be able to weather the storm or even benefit from the Covid-19 crisis, according to new data from investment platform, eToro.
Walt Disney was the most popular stock on the eToro platform in March, with a 196% increase in Malaysian investor buys compared with February.
eToro Southeast Asia head Paul Familiaran said March was a tumultuous month for global markets, with values wiped out from thousands of stocks.
“Yet our data paints a picture of investors very much in control of their portfolios, making positive decisions about managing their risks and seeking out longer-term opportunities.
“In fact, they are displaying a sensible and considered approach that seems to be missing from the markets,” he said in a statement today.
As Walt Disney stock price fell by 18% in March following a significant sell-off in company shares due to the Covid-19 pandemic, Malaysian investors took advantage of the situation by scooping up the stock at a discount.
The same goes with Mastercard’s stock which jumped from 20th to 10th place with a 277% increase in March, fuelled by lower prices.
Advanced Micro Devices (AMD) remains a popular stock due to the increasing popularity of the video game industry, creating a surging market demand for central processing units (CPU).
As AMD’s CPU technology remains ahead of competitors such as Intel, investors are very optimistic about the company’s future.
Familiaran said it was important for any investor to remember to take a long-term view.
“Many retail investors are investing in the companies we are all turning to help us weather the COVID-19 storm like Alibaba, Amazon and Disney,” he said.
“We are seeing many eToro customers making adjustments and even some additions to their portfolios, because as the old adage goes, ‘the best prices come at the worst times.” — April 23, 2020, Bernama
