Latvians have traded in shares of Baltic companies six times more actively than last year, Swedbank data.
In the last five months, the number of transactions with shares of companies in the Baltic States has increased the fastest in Latvia – compared to the first five months of last year, the number of such transactions has increased by 500%, while the volume of transactions has increased by 75%. Judging by the number of stock transactions, the largest increase in trading has taken place in the Baltic stock markets. For example, for shares listed outside the Baltic stock exchange, the number of transactions, compared to the five months of the previous year, has increased “only” by 176%, but the volume of transactions by 115%.
As explained Swedbank Investment department expert Rolands Zauls, “The number of transactions in Baltic shares has grown significantly, as trading in these shares has become more accessible.”
«Since the end of last year, when Swedbank abolished fees for trading in Baltic shares and maintaining a securities account, local investors have paid more attention to investing in shares of Baltic companies. In turn, the relatively small difference in the volume of transactions can be explained by the fact that the shares of Baltic companies are still significantly lower in price than those traded on global stock exchanges ».
As with Baltic equities, the situation is even better with the bank’s ready-made investment solutions – Swedbank Groups funds. Transactions with these funds have grown in popularity by 618% in five months, while the volume of transactions has grown by 317%. «Activity related to Swedbank Group The funds could show that new investors, who have never invested before, initially have more confidence in the ready-made solutions offered by the bank. They are used as a starting point to take the first steps in the world of investment. In addition, there are cases when the first experience is gained with transactions in the amount of 1 euro, »says Zauls.
Part of this increase in investor activity may also be due to the COVID-19 pandemic, during which stock indices in global financial markets lost more than 30% of their value in a short period of time.
During such a rapid change, some investors rush to sell shares in the hope of reducing the risk of loss, while others re-invest additional funds by buying up promising shares that have lost their value in the short term, explains the bank.
However, with the easing of COVID-19 restrictive measures and the incentives put in place by national and central banks, optimism in financial markets has returned relatively quickly. At the Latvian level, it has undeniably also had a positive effect Swedbank initiative to provide its private clients with free securities trading on the Baltic stock exchanges, as well as in transactions with Swedbank Group funds are valued at the bank.
Analyzing data on this year’s investment trends, Swedbank observed that the investments were mainly made by investors who had savings and were waiting for a suitable market situation for larger investments. Special emphasis should also be placed on 18-25 year olds who have decided to start gaining investment experience. The proportion of customers in this age group has grown particularly fast. Since November last year, when Swedbank eased investment conditions for new investors, the number of customers of this group has grown by 41%, says the bank.
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