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Investors are beginning to trade in securities much more actively, Swedbank notes. According to the bank’s data, in March and April this year, the number of transactions carried out by private clients increased 8 times compared to the same period last year, and the total turnover of investment instruments more than doubled. The country’s population mainly chooses to invest in company stocks in the Baltic states and western countries.
“As global financial markets responded significantly to the announcement of COVID-19 and the pandemic, stock indices lost 30 percent in a short period of time.” and more of its value. However, with the immediate adoption of stimulus plans by various countries, confidence gradually returned to the markets. Changes in the markets have also determined the activity of investors in Lithuania: initially rushed to reduce risk and sell stocks, they quickly returned to the markets in a rather optimistic mood, “says Renatas Žeknys, director of investment products at Swedbank.
The greatest growth occurred in the trading of shares in Baltic companies.
The number of transactions in shares of Baltic companies has increased more in the last two months, it has increased approximately 10 times. The impetus for more active trading was also provided by the free trading of securities on the Lithuanian, Latvian and Estonian stock exchanges introduced on Swedbank for private clients. Trade in shares of companies in other countries of the world increased 7 times.
As R. Žeknys observes, judging by the number of share transactions, the most active trading is in the shares of Lithuanian companies, followed by Estonia, followed by US companies. USA, Germany, Latvia, Sweden, UK and France.
Swedbank’s clients invest the largest amounts in shares of companies in Germany, the United States, Lithuania, the United Kingdom and France.
According to the investment expert at Swedbank, investors went live in March and April, having accumulated cash and refrained from making significant investments for the past 2-3 years, pending a good market situation.
Markets are dominated by buyers, not sellers.
Investors who redistributed their investments due to the changed situation also contributed to increased market activity. Another group of active investors are new entrants drawn by market fluctuations and free stock trading.
“The current crisis caused by COVID-19 since 2008 Global financial crises differ in that markets are dominated by buyers and not sellers. Looking at the distribution among Swedbank’s clients, we note that 70%. They are currently buying stocks and only 30 percent. sell them. Positive moods are fueled by the rapid and significant reaction of the world’s central banks and governments to the current crisis, “says R. Žeknys.
True, he said, the increased volatility in the market is likely to continue in the near future. They can be powered by antivirus news, published economic data and financial results for companies. These fluctuations will encourage greater investor activity and higher trading volumes in stocks.
