FBM Small Cap Index correction may extend further, says RHB Retail Research

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KUALA LUMPUR (Dec 8): The FBM Small Cap Index's (FBMSC) correction may extend further, according to RHB Retail Research.

In its technical analyser today, the research house said that after four weak sessions in a row, the FBMSC rebounded by 32.62 points to 16,530.03 yesterday.

RHB Research said the FBMSC charted a white candle, which implied that the session was led by the bulls.

"Nevertheless, this does not negate our bearish view, as the increase was only a minor one.

"Technically speaking, we think the index is merely taking a breather.

"This is a normal reaction, especially after Dec 6's oversold situation, where the 14-day relative strength index indicator was below the 30-point oversold level at 25.53 points," it said.

At 2.12pm today, the FBMSC dipped 0.24% or 39.98 points to 16,490.05.