Rakuten Trade advises focus on small, mid cap stocks


File pic of Bursa Malaysia screens. CIMB lowered its end-2015 target for the KLCI to 1,700 from 1,800.

KUALA LUMPUR: Rakuten Trade continues to be optimistic on the FBM KLCI in the near term and advises investors to  focus on the small and middle capitalised stocks.

Its head of research Kenny Yee said on Monday  the house's target for the KLCI market is at 1,850 which is pegged at a 16.5 times historical market earnings.

"If what we expect comes true whereby the influx of foreign funds come through we will see a very positive (impact on) the KLCI," he said.

Yee said that small and mid cap stocks could see an even steeper climb from the spillover effect of the larger caps.

"These stocks usually have a higher beta. But it is getting tougher to unearth all the good small companies," he said.

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.

   

Next In Business News

Decarbonising cement: Are we ready?
After a homeowner passes
A stinky nuisance: When septic tanks burst
Ringgit to trade in tight range of 4.46-4.48 versus US dollar next week
Building a firm facade
Portfolio positioning under Trump era
EQ expands to Thailand
RHB, CGC in LCTF portfolio guarantee deal
Market struggles to find direction
Sapura Energy ‘in a good place now’

Others Also Read