Based on the information obtained from Malaysia Stock Exchange, the number of retailers opening new accounts have increase by 96% in the 1st quater of year 2020. With the increased trading volume since April 2020, I expected the numbers has increased at least by another 100% in the 2 quarter 2020.
This is support by the trading volume has double to averge 5.5 billion since April .from average of 2.7 billion shares in 1st quarter this years. The trading volume has reach all time high of 9.6 billion shares in 13 May nearly 3 times of normal trading volume.
Based on the above I have selected 3 Companies that are set to benefit from this reboust trading volume.
1) BURSA - Biggest winner due to collection of transaction fees from reboust trading volume. Profit after tax has increased 38% year on year in the 1st quarter announcement.
-Dividend yield 3.1%
2) EFORCE -Two major clients - Mplus secuties and Hong Leong securities are top pick by the retailers as its apps are more user friendly. - Both the above securities firm has experienced technical problems due to reboust trading volume by retailers on 13 May .
- 2 famous shareholders -Brahmal A/L Vasudevan and Wong Thean Soon has substantial shareholdings.
- Dividend yield 1.94%
3) N2N - Major customers - Ambank, RHB securities, TA securities and has business in Hong Kong . Expected to benefit from high trading volume also.
- famous shareholders -SBI holding from Japan
-Dividend yield 2.58%.
The reboust trading volume will increase their profit margin significantly since most of their expenses are fixed cost.
Fixed deposit amount in the bank Malaysia around 209 billion USD . With the reduction of fixed deposit rate to 2.1% in May epected more money to flow into market in next 6 months once matured as people look for higher return and fixed interest rate expected to reduced further in July to around 1.85%.
Closured of casino like Genting Malaysia with monthly revenue of RM500million to add another boost to the trading volume..
So I believe in next 6 months bursa will still expereince high trading volume of at least 5 billion daily