The performance of the Second Board is too volatile and not easy to sustain. However, it will not just fizzle away. It is an attractive hunting ground for speculators. One does not need as much fundamental detail and knowledge as when investing on the Main Board. Our funds, being conservative in nature, generally avoid the Second Board.
Liquidity is under control with the central bank maintaining a tighter policy.
That means domestic liquidity will not be sufficient for a broad-based bull run. For that to happen, foreign funds have to come in. Their movements are difficult to predict. The economy has proven to be resilient. Many foreign fund managers are revising their Malaysia weightings upward.