KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
The shift from megacap tech dominance to broader market participation is gaining traction, with small-cap stocks poised for outperformance in an easing interest rate environment. Small-Cap Indices Outperforming S&P Small Cap 600 : +6% over the past three months Russell 2000 : +7% in the same period Still behind Nasdaq 100 : +9%, but momentum is shifting With the Fed expected to cut rates in the coming month—barring a surprise from inflation or jobs data—small caps are well-positioned due to their sensitivity to interest rate movements. Why Small Caps Now? Floating-Rate Debt Exposure : Small-cap companies typically hold more floating-rate debt, benefiting directly from rate cuts. Lower Valuations : S&P 600 is trading at 17x forward earnings , roughly 30% cheaper than the S&P 500. Historically, the discount averages closer to 25%. Sector Strengths : Russell 2000 is overweight in financials , industrials , and health...