Cheap lower liners on Bursa being picked at fastest pace in 3 months

Buying momentum from retail investors propelled the FTSE Bursa Malaysia KLSmall Cap Index past its 50-day moving average line last week.

PETALING JAYA: Retail investors have been picking up cheap lower liners on Bursa Malaysia at the fastest pace in three months, even as foreign funds continued to dump blue chips stocks due to worries over the tapering of bond purchases by the Federal Reserve in the United States.

The buying momentum propelled the FTSE Bursa Malaysia KL Small Cap Index past its 50-day moving average line last week, signalling that the index may have the potential to head higher. “The market for small and mid-caps has now sprung to life,’’ MIDF’s research head Zulkifli Hamzah said. “Technically, the second and third liners are in a bullish zone.’’