Time for smaller investors to lock in gains (ext: Edge)

The 30-stock FBM KLCI closed at another year's high on Aug 4, mainly on fund buying of big capitalised stocks, but this could also be a time for smaller investors to lock in recent gains and await the release of the April-June financial results.

Sentiment would continue to be firm on Aug 5, with commodity prices on an upward trend, including crude palm oil and crude oil.

According to OSK Investment Research, with RM10 billion being raised for the Amanah Saham 1Malaysia, which goes on sale on Aug 5, there might be an influx of funds into the market to absorb any potential profit taking.

OSK Research also said despite its view that the FBM KLCI was significantly over-valued, the 30-stock index may continue to advance or sustain at the current level for a few more months although ultimately a retracement is inevitable.

The second-quarter (2Q) results season may also see more upgrades than downgrades.