Opportunities emerging in small-to-mid-capitalised stocks

Year-to-date, the FBM 70 has contracted 14.6% and the FBM Small Cap has declined 15.3%.

PETALING JAYA: Despite the prevalent risk-off sentiment in the stock market, there could be opportunities to trade FTSE Bursa Malaysia (FBM) small-to-mid-capitalised stocks in industries with strong fundamentals, following the drop in prices and as external uncertainties subside.

RHB Research advised investors to focus on the small-to-mid-capitalised stocks as they catch up to the larger-capitalised stocks, given the abundance of undervalued opportunities arising from the market correction.