Daily Market Report (24 Oct 2019)
- Blue chips on the local bourse is underperforming to say the least. The FBM KLCI has declined 7.2% year to date dragged down mainly by banking stocks which were drastically sold down by foreign funds.
- On the flipside, we are encouraged by the heightened trade velocity of the smaller cap companies during the same period as reflected by the almost 20% gain of the FBM Small Cap index YTD.
- Dwelling further into the performance, both the Construction and Technology sectors are the saviours of market participation thus far with both indices saw 32.3% and 28.4% jump so far this year.
- We believe liquidity would continue to flow into both sectors as companies within are anticipated to benefit from the recent incentives via Budget 2020. For Tech we favour names like Dufu, Datasonic, Mi Technovation, Greatech and Revenue.
