The Small-cap portfolio lost just 0.5% in October 2026 while the FBM Small Cap Index (FBMSCAP) fell 2.5%, according to Malacca Securities Research. The research house, the research arm of M+ Online, said the result showed resilience during a month when external headwinds and geopolitical uncertainty weighed on sentiment.
What the Factor Focus Portfolios Do
Malacca Securities runs three model portfolios, a Large-cap, a Small-cap and a Combined portfolio, built on a factor approach that blends quality and momentum. The momentum score is based on price change over six and 12 months, while the quality score is drawn from a combination of financial ratios. The research house noted that most picks since inception have beaten the average benchmark return.
October 2026 Performance Against the Benchmark
The FBM KLCI dropped 2.2% in October, and the broader market recorded an average loss of 2.0%, according to the report. The Large-cap portfolio gained 1.8% and the Combined portfolio rose 2.0% over the month.
Since inception, the Large-cap portfolio has returned 40.3%, the Small-cap portfolio 62.7% and the Combined portfolio 53.5%. Malacca Securities Research said all three portfolios have comfortably outperformed the 8.7% return of the broader market benchmark over the same period.
Stock Changes: 18 Added, 18 Removed
The November update adds 18 names, including Maxis, Nestle, KPJ, Sunway, Carlsberg (CARLSBG), Pmetal (PMETAL) and Scientex (SCIENTX). Malacca Securities Research also removed 18 stocks, among them Vitrox (VITROX), Kerjaya (KERJAYA), Mi (MI) and Bauto (BAUTO).
Rebalancing is the mechanism by which the factor scores are refreshed each month, so the swap of 18 names in each direction is a large turnover for a model of this kind. The summary does not break down the weighting of each addition or removal.
How the Valuation Basis Works
The report does not present a discounted cash flow or a per-share fair value for any individual stock in its summary. Instead, the research house ranks stocks on the momentum and quality scores described above, and selects the top-ranked names for each portfolio. Any rating or target price on an individual name would need to be checked in the full report, which Malacca Securities publishes.
Risks Flagged in the Report
Malacca Securities Research cited heightened volatility, cautious investor sentiment, external headwinds and geopolitical uncertainty as the backdrop for October’s weakness. The summary does not list stock-specific risks for the November picks. A factor model can also lag when momentum reverses sharply, and past performance figures are not a guide to future returns.
What This Means for Retail Investors
The report gives retail investors a view of how a rules-based quality and momentum screen performed through a weak month for the market. Readers can compare the portfolio figures with their own holdings and benchmarks. The full report, including the stock lists and methodology detail, is available from M+ Online.
Key Takeaways
- Malacca Securities’ Small-cap portfolio limited its October 2026 decline to 0.5%, versus 2.5% for the FBMSCAP.
- The Combined portfolio gained 2.0% in October, while the FBM KLCI fell 2.2%.
- Since inception, the Small-cap portfolio is up 62.7% against 8.7% for the benchmark.
- The November update adds 18 stocks and removes 18, according to the research house.
- The summary does not disclose a stock-level target price, so the full report on M+ Online is the place to check individual calls.
Frequently Asked Questions
Did Malacca Securities issue a target price in the Factor Focus November 2026 report?
The summary of the report does not show a stock-level target price, because the Factor Focus is a portfolio model rather than a single-stock call. Malacca Securities Research presents performance and portfolio changes instead, so the full report on M+ Online should be checked for any individual valuation.
How much did the Malacca Securities Small-cap portfolio return since inception?
According to Malacca Securities Research, the Small-cap portfolio has returned 62.7% cumulatively since inception. That compares with 8.7% for the broader market benchmark over the same period.
What factors does the Malacca Securities Factor Focus use to pick stocks?
The research house combines a quality score, built from financial ratios, with a momentum score based on price change over six and 12 months. Stocks are added or removed according to these scores each month. The full methodology is set out in the report available from M+ Online.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 03 November 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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