Small investors become dip buyers as energy shock sinks stocks

Retail traders across Asia are ramping up borrowing to fund brokerage purchases, concentrating on rising oil and energy names and buying deeply beaten stocks. The leverage-fueled demand is supporting energy/commodity prices and propping up select equity pockets but raises downside risk and could amplify volatility in those sectors if prices reverse.

Analysis

Retail traders across Asia are ramping up borrowing to fund brokerage purchases, concentrating on rising oil and energy names and buying deeply beaten stocks. The leverage-fueled demand is supporting energy/commodity prices and propping up select equity pockets but raises downside risk and could amplify volatility in those sectors if prices reverse.