LITTLE FELLAS MAKING BIG MOVES
In stark contrast to the FBM KLCI related bluechips, we are seeing a notable shift to second-third liners as investors adopt a 'risk on' approach to investing in the local bourse. As a guage, the FBM Small Cap (which comprises of the top 98% of the Bursa Malaysia Main Board) has advanced over 500 points from its 11,1361.30 low in December.
Yesterday, the FBM Small Cap rose 1.5% or 183.68 points to settle at 11,920.19. In fact, the broad market index broke above the crucial down-trend resistance, and we believe that a major bullish reversal may be at hand. Trading volumes have also picked up in recent days, while the MACD is indicative of a gradual shift in momentum from bearish to bullish. To that respect, we believe improved broad market sentiment should be a boon for small cap traders in the days and weeks to come.
GOODLUCK
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