Kenanga to encourage Gen Y to buy stocks

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KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga) is committed to continuously educating and raising awareness among the younger generation about stock trading to boost their participation on Bursa Malaysia.

“The intent is to bring more investors into the market, particularly the younger generation,” said Kenanga head of equity broking Lee Kok Khee, after the conclusion of Kenanga’s KenTrade Trading Challenge yesterday.

The trading challenge was designed to simulate real-life trading and was based on real-time market data from the local bourse.

According to Lee, the independent investment bank will continue to have a “sizeable allocation” from its operating expenditure for this purpose. He added that more than RM500,000 will be allocated in 2015 to promote market awareness among younger investors.

Its plans to engage the younger audience, including holding another trading competition, where participants will use “real money”, and creating a mobile application trading game application.

Lee said retail investors now constitute over 20% of traders on Bursa and that while Kenanga’s efforts are only a marketing or customer acquisition strategy, they are also aimed at boosting retail investors’ number to over 30% in the next two years.

“What we have observed is that those from Generation Y are not participating in the market. I’ve looked at the demographics of my investors and my agents and they are all above 40 years old,” said Lee.

Other industry players like Securities Commission Malaysia and Bursa are also trying to boost retail and youth participation in the market.

 

This article first appeared in The Edge Financial Daily, on November 14, 2014.