Individual investors' trading behavior in Moscow Exchange and the COVID-19 crisis.

Abdulaziz Djalilov, Numan Ülkü
Author Information
  1. Abdulaziz Djalilov: Westminster International University in Tashkent, Uzbekistan.
  2. Numan Ülkü: Westminster International University in Tashkent, Uzbekistan.

Abstract

This article presents the first study of Russian individual investors' aggregate equity trading behavior using novel data from Moscow Exchange, with a focus on the COVID-19 episode. Aggregate Russian individual bought the dip during the COVID crash in March-April 2020. While this can be accounted for by their regular contrarian trading traits, they remained as net buyers until the market fully recovered, a sign of sophistication in striking contrast to views that characterized individual investors as noise traders. Our analysis suggests that this outcome was driven by a combination of regular contrarian traits and a unique positive shock to individual investor demand for equities, with weaker evidence of exploiting a negative bubble.

Keywords

References

  1. Financ Res Lett. 2020 Nov;37:101717 [PMID: 32837386]
  2. Financ Res Lett. 2021 Jul;41:101857 [PMID: 36568731]

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