Deriu, Paola; Lillo, Fabrizio; Mazzarisi, Piero; Medda, Francesca; Ravagnani, Adele; Russo, Antonio; (2022) How Covid Mobility Restrictions Modified the Population of Investors in Italian Stock Markets // L’evoluzione della composizione del retail trading sul mercato azionario italiano a seguito delle restrizioni imposte dalla pandemia da Covid. CONSOB Quaderni Fintech , 10 pp. 1-31.

Preview

Text FinTech_10_CONSOB.pdf - Published Version Download (865kB) | Preview

Abstract

This paper investigates how Covid mobility restrictions impacted the population of investors of the Italian stock market. The analysis tracks the trading activity of individual investors in Italian stocks in the period January 2019-September 2021, investigating how their composition and the trading activity changed around the Covid-19 lockdown period (March 9 - May 19, 2020) and more generally in the period of the pandemic. The results pinpoint that the lockdown restriction was accompanied by a surge in interest toward stock market, as testified by the trading volume by households. Given the generically falling prices during the lockdown, the households, which are typically contrarian, were net buyers, even if less than expected from their trading activity in 2019. This can be explained by the arrival, during the lockdown, of a group of ∼ 185k new investors (i.e. which had never traded since January 2019) which were on average ten year younger and with a larger fraction of males than the pre-lockdown investors. By looking at the gross P&L, there is clear evidence that these new investors were more skilled in trading. There are thus indications that the lockdown, and more generally the Covid pandemic, created a sort of regime change in the population of financial investors.

Download activity - last month

Export as CSVXMLJSON

Download activity - last 12 months

Export as CSVJSONXML

Downloads by country - last 12 months

Export as CSVJSONXML

Archive Staff Only

View Item