ON Bursa Malaysia, 23% of active trading accounts belong to millennials. As at end-September 2019, they were responsible for 47% of total new accounts opened and the number is continuing to grow. Clearly, they see the value in investing.
The growing millennial market
According to Lim Chia Wei, executive director of Malacca Securities, this is due to the exposure to financial education and knowledge readily available on the internet, coupled with the rise of online stock trading. “Being a technology-savvy generation, they utilise advanced charting tools and are open to exploring new ways of trading, such as ‘robo’ advisory, ‘algo’-trading and ‘copy’-trading. It suits their digital mindset.”
A new generation of investors
Millennial Firdaus Ismail, an executive with a KL-based transportation development company, once considered Ponzi-type schemes, forex trading, get-rich-quick schemes and multi-level marketing, but couldn’t trust any of them.
Firdaus began trading on Bursa Malaysia with very little knowledge, but learned on-the-go through Bursa Malaysia’s online platform, Bursa Marketplace, and has grown into a savvy investor. He says, “Young people like myself should invest on Bursa Malaysia. It is regulated, transparent and ensures fair pricing practices. It’s an easy and powerful way to grow and accumulate your wealth.”
Bursa Malaysia, the digital marketplace
Millennials value security, information, and convenience. That’s why Bursa Marketplace was launched in 2014 – a first-of-its-kind, unique and user-friendly virtual marketplace. Bursa Marketplace aims to “put the market in the pockets” of all Malaysians. It provides access to comprehensive, objective and accurate market information, innovative products and other trading ideas to help any kind of investor grow wealth and improve financial literacy.
Empowering next-gen investors
In collaboration with the Financial Youth Intelligence (FYI), the Bursa Young Investors Club (BYIC) was created as a social platform to help increase investment awareness and knowledge through personal development programmes spanning leadership, entrepreneurship and finance.
There are 26 clubs established across Malaysia, offering programmes such as leadership bootcamps, investment workshops, webinars and a BYIC stock simulation game.
Bursa Malaysia also presented the Shariah Trader Challenge and the Inter Varsity Stock Challenge – a virtual stock trading game – to generate interest and educate millennials and students in the ways of responsible investing. Nineteen-year-olds Lee Chi-Wing, Sam Jun Kit, Tan Guan Yi and Yong Yoon Voon of the Inter Varsity Stock Challenge’s winning team beat more than 700 competing teams to capture the “Highest Overall Portfolio Value”. The RM30,000 prize money provided them a great start to stock investing. “We think the stock challenge is a golden chance to learn the behaviour of the stock market, which contributes to our goal of financial freedom.”
Don’t be the millennial who doesn’t invest
All you need is the right tools. That is what you’ll find on Bursa Malaysia, no matter what your experience level is, or how much money you have.
There are exchange traded funds (ETFs) – flexible, transparent and with a low cost-of-entry, it offers wide exposure to stocks, bonds or commodities. Or try real estate investment trusts (REITs) – to invest in property with no mortgage borrowings while still being able to gain from high-quality properties. There are also the regular shares and derivatives you can invest in – after you learn the basics.
Bursa Malaysia, where the young find more opportunities to grow
History shows that long-term investing in the stock market almost always outperforms traditional financial tools like fixed deposits. If you’re young, time and technology are on your side – use it well.
Bursa Malaysia will be launching a first-of-its-kind “Mirror, Learn and Trade” (MLT) platform later this month on Bursa Marketplace, which offers investors a first-hand opportunity to learn how licensed investment advisers manage and strategise a stock portfolio. The platform will adopt a social media look-and-feel for ease of use and great user experience. With the introduction of MLT, Malaysians especially millennials can build the confidence and knowledge that will guide them to successfully participate in the stock market.
Bursa Malaysia believes in educating younger generations of Malaysians. For the young and digitally savvy, make investing your lifestyle now. It may be a long journey, but it is one that will most certainly be rewarding.
Find out more about various investment products on www.bursamarketplace.com.
Part of a series of articles by Bursa Malaysia to educate, develop and empower everyday investors.
TOKYO, Oct 29 ― Tokyo shares surged to the highest close in a year today, lifted by optimism about US-China trade talks and the yen's relative stability. The benchmark Nikkei index marked seven straight winning sessions, adding 0.47 per cent or…
TOKYO: U.S. stock futures and Asian shares slipped on Wednesday as revenue warnings from Texas Instruments raised worries about the global tech sector and after British lawmakers forced the government to hit the pause button on the latest Brexit deal.
S&P500 mini futures dropped 0.3% while Japan’s Nikkei last stood almost flat after having fallen as much as 0.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%.
On Tuesday on Wall Street, the S&P 500 lost 0.36%.
After the bell, Texas Instruments, whose broad lineup of products makes it a proxy for the global chip industry, forecast current-quarter revenue to fall 10 to 17% from a year earlier, well below estimates.
Texas Instruments shares tumbled 9.8% in after-hour trade, driving down other chipmaker shares including Intel and Nvidia.
Worries that the global microchip industry is being squeezed by a downturn in demand and a prolonged U.S.-China trade dispute sent some Asian chip-related shares lower.
Taiwan’s TSMC fell 0.2% while South Korea’s SK Hynix shed 0.7% and Japan’s Tokyo Electron slumped 3.7%.
“Given recent rally in semi-conductor shares, some adjustments will be inevitable,“ said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.
“But our investor survey has shown that many investors are still cautious on the sector so a bit of weakness in the industry would surprise few of them,“ he added.
In the currency market, sterling dipped 0.15% to $1.2851 , falling further from five-month highs of $1.3012 set on Monday.
But the currency still kept hefty gains made over the past fortnight on growing expectations that a no-deal Brexit will be avoided even though it is still not clear how the process will unravel.
On Tuesday, the British parliament voted in favour of Prime Minister Boris Johnson’s Brexit plan, but then rejected his timetable to fast-track legislation to take Britain out of the European Union. That effectively meant Britain would not be able to finalise its exit by Johnson’s Oct. 31 deadline.
The next step, Johnson said, would be waiting for the EU to respond to a request to delay the Oct. 31 Brexit date, which the prime minister reluctantly sent to Brussels on Saturday after being forced to do so by lawmakers.
A source in Johnson’s office said on Tuesday that a new election is the only way to move on from Britain’s Brexit crisis if the European Union agrees to a delay until January.
“Broadly speaking, there are two scenarios. There will be a short extension before the parliament will agree on Johnson’s plan. Or there could be a general election, which would need a longer extension,“ said Kyosuke Suzuki, director of forex at Societe Generale.
“But it now seems unlikely that Britain will crash out of the EU on Oct. 31,“ he said.
Receding worries about a no-deal Brexit also underpinned the euro, which stood at $1.1122, flat on the day and a tad below Monday’s two-month high of $1.1180.
The yen ticked up 0.15% to 108.31 yen per dollar, in a slow recovery since hitting a 2-1/2-month low of 108.94 on Thursday.
The dollar was broadly weak, ahead of a Federal Reserve policy meeting next week, where policy makers are expected to cut interest rates by 0.25 percentage point.
Oil prices fell after industry group data showed U.S. crude stocks rose more than expected last week.
Still, on the whole the market held firm after China signalled progress in trade talks with the United States and OPEC and its allies pondered deeper production cuts.
Brent crude futures fell 0.52% to $59.39 a barrel while U.S. West Texas Intermediate (WTI) crude lost 0.81% to $54.04 per barrel. -Reuters
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