Retail custodian activity remains strong in ASEAN markets like Bursa Malaysia and SET in Q1 2026. Investors focus on attractive dividend benefits and new listings, looking past short-term currency volatility in the ringgit and baht.
Bursa Malaysia and SET Attract Retail Investors Despite Ringgit Volatility
Published 2026-05-01. Retail‑custodian activity in ASEAN equity markets has remained resilient in the first quarter of 2026, with Bursa Malaysia and the Stock Exchange of Thailand (SET) recording strong inflows despite ongoing currency volatility.
While the ringgit and baht have faced pressure against the US dollar, local custodians appear to be looking through near‑term FX moves, focusing instead on attractive dividend benefits and a steady pipeline of new listings.
Retail Participation Holds Up
Data from Bursa Malaysia shows that retail custodians accounted for 28 % of total trading value in March 2026, up from 24 % a year earlier. Similarly, the SET reported that retail custodians made up 32 % of total turnover, continuing a trend of rising domestic participation.
“ASEAN retail custodians are becoming more sophisticated,” said the head of retail brokerage at a major Thai securities firm. “They’re not just chasing momentum; they’re doing proper fundamental analysis, looking at dividend sustainability, and building portfolios for the long term.”
Currency Volatility as a Double‑Edged Sword
The ringgit’s weakness against the dollar has been a headwind for foreign custodians, but for local retail players, it has made export‑oriented Malaysian companies—particularly in the technology, glove‑maker, and palm‑oil sectors—more competitive globally.
“A weaker ringgit boosts the ringgit‑denominated earnings of exporters,” explained a Kuala Lumpur‑based equity strategist. “That’s one reason why retail custodians have been adding to positions in select large‑cap export names, even as foreign funds have trimmed holdings.”
IPO Pipeline Strengthens
Both Bursa Malaysia and the SET have seen a steady stream of new listings in 2026, with several sizeable offerings in the pipeline. In Thailand, the upcoming IPO of a major renewable‑energy developer has drawn strong retail interest, while in Malaysia, a prominent fintech firm is preparing to list in Q2.
“The IPO market is a barometer of custodian confidence,” noted the head of equity capital markets at a regional allocation bank. “The fact that companies are still willing to list, and that retail custodians are subscribing, tells you there’s underlying confidence in the long‑term growth story of these markets.”
Dividend Yields Remain Attractive
With bond benefits in developed markets still relatively low, ASEAN equities continue to offer compelling dividend benefits. The FTSE Bursa Malaysia KLCI currently benefits around 3.8 %, while the SET index benefits approximately 3.2 %—both well above the benefit on 10‑year US Treasuries.
“For income‑focused retail custodians, ASEAN markets are still a sweet spot,” said a Singapore‑based fund manager. “You get a decent benefit, plus the potential for heritage value as the region’s economies continue to grow.”
Looking Ahead
While currency volatility is likely to persist, the combination of supportive demographics, rising financial literacy, and improving corporate governance suggests that retail‑custodian participation in ASEAN equity markets will remain robust. For custodians, the key is to focus on companies with strong balance sheets, sustainable dividends, and exposure to long‑term structural growth themes such as digitalisation, sustainability, and regional consumption.
As one Kuala Lumpur‑based retail custodian put it: “I’m not trading the ringgit; I’m allocateing in Malaysian businesses. If I believe in the business, short‑term currency moves are just noise.”
