Markets
Small-cap stocks ripe for picking
Cheah Chor Sooi | 12 Jan 2018 00:30
If the performance of this year’s maiden initial public offering (IPO), Binasat Communications Bhd, can serve as a guide, small-cap stocks which have been in the doldrums for the past two years are poised to rebound or can expect some form of revival.

Against a backdrop of the recent FBM KLCI uptrend – which has a strong across-the-board spillover effect – the ACE Market  telco services provider ended its first trading day on Jan 8 with a commendable 28.3% or 13 sen gain to close at 59 sen.

Boosted by prospects of the 14th General Election (GE14) which must be held on or before Aug 24 – and a surge in foreign fund inflow (RM915.1 mil for the Jan 2-5 period which is the biggest weekly net inflow recorded since March 2017) – the benchmark KLCI has very much surprised market observers by its ability to hold steady above the psychological 1,800-mark.

Given Jan 11’s close of 1,816.88 points, the KLCI is only 4.187% or 79.35 points lower than its all-time high of 1,896.23 on July 8, 2014.