Individuals' Share Of Stock Trades Reaches 7-Year High
Saturday, October 9, 1999
TOKYO (Nikkei)--An increasing amount of individuals are returning to the stock market with their combined share of turnover at the Tokyo, Osaka and Nagoya exchanges totaling 29.2% in April-September, a seven-year high, according to the exchanges.
Individuals are trying to reap higher returns in the stock market amid historically low interest rates. As an increasing number of brokerages are offering ever lower commission fees for online transactions, individuals' presence in the market may grow even more, market observers say.
Individuals sold shares worth some 19.32 trillion yen in April-September, while purchases were valued at around 19.06 trillion yen. Turnover was 330% higher than the figure for the same period a year earlier.
Their share of total turnover (excluding trades conducted by brokerages for their own accounts) jumped 16.4 percentage points year on year and was the second largest next to that of foreign investors, which came to 40.1%. Foreign investors were the main force behind the market rally that began in March.
From March, privatization issues such as Nippon Telegraph and Telephone (9432) gained, as did over-the-counter shares, many of which are held by individuals. This prompted individuals to step up investment. "Many individuals switch to other shares as soon as they have pocketed profit on their holdings," said one observer at a major securities house.
(The Nihon Keizai Shimbun Sunday edition) |
