KUALA LUMPUR: Rakuten Trade Sdn Bhd (Rakuten Trade) continues to see a surge in trading activity in electric vehicle (EV)-related shares locally and abroad, especially as interest around it continues to grow.
This extends beyond electric vehicles to include software, semiconductors, components, batteries, and lithium mining sectors.
Rakuten Trade chief executive officer Kazumasa Mise said despite fluctuations in share prices and a nearly 40 per cent reduction in Toyota Motor Corp's 2023 EV sales forecast, investors are still interested in these stocks because of its technological advancements.
He said investing in EV-related shares is perceived to support sustainable investing and align with their lifestyle preferences.
"The EV sector's rapid growth and promising prospects continue to capture the attention of investors seeking opportunities in this dynamic industry," he said in the statement.
Bursa Malaysia EV sector stocks, such as EP Manufacturing Bhd (KLSE: EPMB) have witnessed a 41 per cent surge in the number of Rakuten Trade traders.
This surge followed EPMB's announcement of securing an EV manufacturing license from the Ministry of International Trade and Industry (MITI). Trading activity across EV-related stocks like ACO Group Bhd, Pestech International Bhd, and Yinson Holdings Bhd also continue to grow by more than 100 per cent on average, monthly.
These companies reportedly are helping to speed up EV ecosystem adoption and infrastructure development needed in this country.
Mise said investors trading Bursa EV shares tend to embrace a short-term investment strategy.
"This is indicative of their higher risk appetite. Conversely, beginner US traders who invest in EV stocks, adopt a buy-and-hold strategy, displaying their confidence in the long term potential of EV companies.
"For instance, Tesla has consistently maintained its position as the most-traded stock for eight consecutive months in 2023 and remains the favoured choice for debut traders on the platform," he added.