To Study on the Investors’ Confidence Towards the Malaysian Stock Market

Abstract

The research study had been targeting to extend the exploration on the study on the investor’s confidence towards the Malaysian stock market. The research question arises with the uprising of the uncertainty of the Covid-19 and recession in the economy which lead deep further to the impact in the stock market of Malaysia in Kuala Lumpur Stock Exchange (KLSE) Bursa Malaysia. With this, the study had been developed to target the study on the investor behavioral on the confidence level towards the Malaysian stock market during the pre-pandemic, pandemic and post-pandemic period which will provide the detailed overview on the progression of the investor’s confidence to date. The previous study had suggested that the confidence level of the investors had been closely link to the performance of the market indices which triggered the rise and fall in the investor’s confidence. The quantitative study had been carried out to develop the data analysis framework to explore the comparative analysis of the KLSE market index against the trading volume by the investors in the stock market of Bursa Malaysia. Besides, the correlation analysis and regression analysis had been conducted to support the quantitative analysis to achieve the understanding on the existence of the positive or negative relationship between the two variables. The findings from this study had suggested that the sensitivity of the trading volume behavioural among the investors are higher than the degree of variation in KLSE market index. In addition, the significant negative relationship with weak negative correlation had been identified between the two variables suggesting that the investors’ confidence is not highly affected by the change in the KLSE market index. Furthermore, the trading activities had been drastically increasing during the pandemic period and post-pandemic period suggesting the confidence of the investors had been restored and not affected by the current uncertainty in the market.  In summary, there is no solid evidence to prove there is an impact towards the investors’ confidence towards the stock investment during the pandemic and post pandemic period.