Individual Stock Investment Soars In FY99
Sunday, April 2, 2000
TOKYO (Nikkei)--Individual investors' share of overall stock trading came to about 28.7% in fiscal 1999 ended March 31, up 13 percentage points, The Nihon Keizai Shimbun learned Sunday. The percentage is comparable to fiscal 1992 when the figure was 28.4%.
Individuals have boosted equity investment as interest rates languish at rock-bottom levels and high-yield financial instruments are not to be found.
Complete liberalization of stock trading commissions last October and the spread of online trading both mean that individuals can now buy and sell shares at low cost.
For the period between April 1, 1999 and March 24 of this year, individuals' share of total turnover on the first and second sections of the stock exchanges in Tokyo, Osaka and Nagoya totaled 28.7%.
After peaking at 32.4% in fiscal 1990, the percentage dropped sharply due to a stock market slump and money scandals involving brokerages. The figure fell to 15.5% in fiscal 1997.
But the Nikkei Stock Average gained some 28% in fiscal 1999 on expectations of a recovery in corporate earnings and strong share performance by the IT sector.
The rise in the number of individuals trading, however, has also increased speculative transactions, adding to the volatility of the market, some analysts say.
(The Nihon Keizai Shimbun Monday morning edition)
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