Inspired by GameStop craze, BursaBets targets Malaysian glove stocks
- Shares of Top Glove rose over eight per cent as mom-and-pop investors drew inspiration from the GameStop trading frenzy in the US
- Modelled on the Reddit forum WallStreetBets, BursaBets was set up to target shares of glove firms – prompting a warning from Malaysia’s regulator
Shares of the American video game shop chain surged from less than US$20 to a peak of US$492 earlier this week, after millions of amateur investors active on online forum Reddit rallied together to punish short sellers by sending prices soaring.
In short-selling, investors borrow stock, sell it and then buy it back at a lower price, keeping the difference. But if a stock unexpectedly soars, then investors are forced to buy it back at a loss.
Inspired by the US movement, Malaysian mom-and-pop investors Thursday set up their own Reddit group, naming it BursaBets after the country’s stock exchange.
Like the US group WallStreetBets, BursaBets became an online rallying spot for those urging people to buy and hold shares, in this case, targeting glove stocks.
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Malaysian rubber glove makers see stocks rally on coronavirus pandemic sales
Malaysia’s securities regulator and the stock exchange said on Friday they were closely monitoring domestic trading after the US stock moves.
