New data from investment platform eToro shows that nine out of the top 10 invested stocks by Malaysians are technology companies last month.
With a 19 percent increase in Malaysian investor buys compared with March, Tesla Inc. became the most popular choice of stock on eToro as it rose from 4th to 1st place in April.
In addition, Advanced Micro Devices (AMD) remains as a popular stock in April with a 114 percent increase in trading. Investors realize that amidst the stay-at-home economy, there would be a surge in demand for the company’s central processing units (CPUs) and graphics processing units (GPUs) that are used in laptops and data centers.
Nemo Qin, Senior Market Analyst at eToro, commented, “During the economic downturn, investors prefer to invest in consumer staples or dividend aristocrats than other sectors.
However, it seems that the interest in the technology sector has not only remained, but technology stocks have increased in popularity among investors during the pandemic. I believe that the popularity and high demand for technology investment will remain for the rest of the year.”
“There are a few reasons why technology stocks are popular among investors, such as these companies have successful business models or healthy financial statuses that allow them to continue supporting the company development and business operations,”Qin added.
“Another reason is, people are spending more time on technology products, be it using streaming services, e-commerce, video games, online fitness, e-Learning, and working from home – and many technology companies, such as Netflix and Zoom, are recognising these trends and seizing these opportunities to generate more income and revenue.”
The data represents the topmost bought stocks by Malaysian investors on the eToro platform in March 2020. Accurate as of May 1.