France's AMF Research Shows Record Inflow of Retail Investor Activities

A study conducted by the Autorité des Marchés Financiers (AMF) showed that the pandemic spurred a flood of new retail investors into the stock market in 2021.

The fifth edition of the AMF's Active Retail Investor Dashboard saw a record inflow of new private investors, taking the overall number of individuals with brokerage accounts to 1.1 million over the last three years.

Retail investors' activity just wrapped up a record year in 2021, with 1.6 million accounts carrying out at least one transaction on shares, a 19% increase compared with a year earlier. In the quarter just ended, 743,000 traders placed at least one order to buy or sell shares. The figure was in line with previous quarters, with the exception of the second quarter when volumes were boosted by IPOs, the AMF said.

Other highlights show that retail trading volumes more than doubled in the last two years compared  to the turnover observed in 2018 and 2019. This came as market volatility and Covid lockdowns created a unique opportunity for regular investors to play the stock market's unprecedented rally.

Specifically, retail investors' stock transactions were almost 13 million in the Q4 2021 and over 55 million trades for the whole year. These annual volumes match those achieved in 2020 when many French turned to trading as the central banks slashed rates to record lows, making banks' deposits less attractive.

Source: FinanceFeeds