KUALA LUMPUR: Small and medium capitalised stocks with market capitalisation under RM1 billion are increasingly attracting investors’ attention with their good return on asset and revenue as well as compound annual growth rate (CAGR), says Bursa Malaysia Bhd.
“I personally think that if investors spend time and look at each individual company, they will see good investable companies,” chief executive officer Datuk Tajuddin Atan told reporters on the sidelines of the Focus Malaysia Best Under A Billion Award event recently.
He said while the big listed companies and the top 30 are investable, the focus will be on the small and medium-cap companies that are growing and have good potential.
More cash injection into the capital market will help improve its performance, he said, pointing out that a few companies are already giving good results as well as providing clarity in their plans.
“Investment by ValueCap Sdn Bhd (the government-owned fund manager) by looking at the fundamentals and their performance would improve the market especially in terms of liquidity,” he added.
Inter-Pacific Research Sdn Bhd head of Research Pong Teng Siew was quoted as saying small and mid-cap stocks had performed quite well.
“Investors are still in a holding mode, on expectations that ValueCap will start investing in the equity market in late November or early December.
“No one is selling ahead of that. Once the investment starts to come in then we can expect the market to climb,” said Pong. — Bernama