The share price of GameStop has been soaring due to the joint speculation of retail investors, making the big short sellers have to claim compensation. This enthusiasm has also spread across many countries. The latest example of the popularity of the retail army is Malaysian rubber glove manufacturer Top Glov. However, due to the surge in users, the trading platform suffered the same technical problems as the US platform.
The Malaysian online forum Burbsabets was founded on Thursday and attracted 4,800 users to join. This place discusses Malaysian listed companies. It is known as the Malaysian version of the Reddit forum “Wall Street Bets”. Cyclonus’s gathering place for retail investors.
Top Glove jumped 15% in intraday trading on Friday, writing the biggest gain since September 11 last year. This stock is the stock that short sellers are most actively betting on since Malaysia lifted the ban on shorting earlier this year. Its rival Hartalega Holdings shares also rose 10%, while Supermax shares rose more than 9%.
Popular Australian short-selling stocks such as travel industry Webjet and salmon farmer Tassal Group’s shares rose sharply on Thursday.
In Europe, the Finnish mobile phone manufacturer Nokia’s American Depositary Receipt (NOK-US) It soared by 40% during the intraday session on Wednesday. The company issued a statement that day stating that there was no relevant company development or actual news that would drive the stock price or trading volume to surge.
Nokia closed down 23% on Thursday, and its shares listed in Finland also fell 13.3%.
The real estate group URW, which is also the target of shorting, surged 20% on Wednesday. Japanese e-commerce giant Lotte and baby products company Pigeon also rose strongly on the same day.
The influx of retail investors allowed brokerages to witness a surge in trading volume. Trading platforms of Robinhood, Vanguard, and Charles Schwab were all down on Wednesday. European trading platforms such as Trading212 also encountered the same problem, and industry players restricted trading.
Retail investors
Some new European retail investors said that they bought individual stocks mentioned in the WallStreetBets discussion thread, including GameStop, AMC, BlackBerry (BB-US) And Nokia.
Chamath Palihapitiya of the venture capital industry described the market volatility this time as a result of “little men” fighting Wall Street. But analysts have warned that retail investors may lose out in the frothy stock market at any time.
Regulators have paid close attention to GameStop’s trading boom. The US Securities Regulatory Commission (SEC) said it is paying close attention to the situation. The Speaker of the US House of Representatives, Nancy Peloci, and the incoming Senate Banking Committee Chairman, Sherrod Brown, both Said that it plans to hold a hearing and review the incident.
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