Malaysia small caps may be too hot now, says fund manager

Kuala Lumpur

THE surge in Malaysian small caps over the last few months may be reason enough to avoid buying many of them now. So says Gan Eng Peng, head of equities at Affin Hwang Asset Management, citing an 18 per cent gain in the FTSE Bursa Malaysia Small Cap Index since November.

Stocks in the measure are up more than twice as much as those in the large-cap benchmark, as a government plan to support the sector coincided with an emerging-market rally.