Small caps pick up as economic crisis eases

This week's analysis shows a sudden upturn in small-cap indices that proves investors are growing confident in stabilising economic data

As the economic crisis appears to be easing, the heightened interest in small-cap stocks has been noticeable, with their performance jumping compared to the benchmark blue-chip index, the FTSE 100, and even the Mid Cap 250 Index. The graph indicates a sharp bounce in both the Hoare Govett Small Cap Index and the FTSE Fledgling Index. The former index measures the performance of the bottom 10% by value of all listed UK equities, while the latter looks at all those stocks too small to qualify for the All Share/FTSE Smaller Companies Index. This sudden upturn, which started in March as t...