Rakuten Trade Charges Ahead: Electric Vehicle Stocks Surge

KUALA LUMPUR, 27 November 2023 – Rakuten Trade Sdn Bhd (Rakuten Trade), Malaysia’s first fully digital equity broker continues to see a surge in trading activity especially as interest around Electric Vehicle (EV) related shares continue to grow locally and abroad. This extends beyond electric vehicles to include software, semiconductors, components, batteries, and lithium mining sectors.

According to Rakuten Trade’s CEO, Kazumasa Mise, “Despite fluctuations in share prices and a nearly 40% reduction in Toyota Motor Corp's 2023 EV sales forecast, investors are still interested in these stocks because of its technological advancements. 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.”

Bursa Malaysia EV sector stocks, such as EP Manufacturing Bhd (KLSE: EPMB) have witnessed a 41% 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 (KLSE: ACO), Pestech International Bhd (KLSE: PESTECH), and Yinson Holdings Bhd (KLSE: YINSON) also continue to grow by more than 100% on average monthly. These companies reportedly to be helping to speed up EV ecosystem adoption and infrastructure development needed in this country.

Over in the United States, EV-related stocks such as Tesla (TSLA), Rivian Automotive (RIVN), and dual-listed company NIO Inc (NYSE: NIO; HKG: 9866) have consistently remained popular choices among Rakuten Trade clients.

In Hong Kong, Rakuten Trade reports seeing continuing interest among savvier for BYD (BYDDF), Nio (NIO), Li Auto (LI) and XPeng (XPEV) stocks.

Mise notes that 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, TSLA has consistently maintained its position as the most-traded stock for eight consecutive months in 2023 and remains the favored choice for debut traders on the platform.

Entering the final quarter of 2023, Rakuten Trade reaffirms its dedication to boost retail participation in the equity market. To achieve this, they launched a "Trade Smart & Win A Tesla" campaign that awards one client the keys to a Tesla Model Y vehicle. This campaign is designed to acknowledge and reward traders for their active involvement in the market. The more trades a Rakuten Trade client successfully matches, the higher their opportunity to win.

As of 31 October 2023, Rakuten Trade had activated more than 270,000 accounts and handled more than RM123billion in total trading value since business day one (May 2017). Its clients’ assets under administration were more than RM4billion.