DRIVEN by retail investors, small-capitalisation (cap) stocks in Malaysia have continued their run-up from last year into the first few months of 2021. The segment, comprising stocks with less than RM2bil in market value, has also outperformed its big-cap counterpart on the local bourse.
As of Thursday, the FBM Small Cap Index had risen about 10% year-to-date (ytd), while the main FBM KLCI Index, which is made up of the 30 companies with the biggest market cap, had lost 1.2%.
According to market observers, small-cap stocks will likely still be able to continue their uptrend despite having already staged a relatively long rally, thanks to the robust participation of retail investors in the equity market.
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