To Study the Reaction of the Investors in Trading Behaviour in Bursa Malaysia Based on KLSE Market Index Performance

Abstract

The investor’s behaviour had always raised eyebrows on the behaviour towards the trading activities within the stock market exchange. As the major secondary market of the trading activities of the stock investments, it is understood that it is importance to understand the behaviour of the investors as higher trading activities in the stock market exchange will promote better stability of the stock market. The study is aimed to explore the potential reach of the investors in trading behaviour in Bursa Malaysia with reference to the performance of the KLSE market index. The previous study had suggested that the better stock market performance will provide the investors with higher confidence in the stock performance which will motivate the higher trading volume in the market. With this, the methodology of the quantitative research had studied the historical data for the past 20 years to understand the behaviour and pattern between the movement of the KLSE market index growth against the trading volume growth within the Bursa Malaysia. The outcome of the study provides ethe evidence that suggest there is no relevance of the correlation observed between the KLSE market index growth and the trading volume growth as well as there is no significant relationship detected between the two variables. This had been a significant contribution based on the outcome of the study which put forward further suggestion on the future research area for the benefits of academic.