ZLBT Chats

Tuesday, January 8, 2013

Lower liners on the move ...... The FBM Small Cap Daily Chart 08 Jan 2013

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.


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