KUALA LUMPUR (Oct 21): Inter-Pacific Securities Sdn Bhd said despite the slightly wobbly market conditions, the equity market undertone remains upbeat with the economic re-opening theme still in play that would also provide the continuing near-term impetus.

In its daily bulletin on Thursday, the research house said the FBM KLCI was barely changed on Wednesday as it managed to end the day slightly higher after lingering in the negative territory for most of the trading session.

It said there was mild profit taking on recent gainers in the oil & gas, property and construction sector leaders, but banks were steadfast to help shore up the key index at the end of the session.

It added that the lower liners were mixed with bouts of profit taking also prevalent that left losing stocks ahead of gainers for the day.

At the same time, the research house said commodity stocks remain in favour due to their elevated selling prices that are showing few signs of easing as yet.

“Consequently, the market’s positive undertone is preserved and this should promote further near-term upsides with laggards and rotational plays coming to the fore.

“Still, we think that the bouts of choppiness will remain as stock valuations are already toppish and that may slow the FBM KLCI’s ascend.

“For now, the 1,610 level still looks to be a significant hurdle to clear, which is followed by the 1,620 level. The supports remain at 1,600 and 1,590 points respectively,” it said.

Inter-Pacific said the lower liners and broader market shares are also seeing more hurdles amid the continuing lack of fresh buying.

“As it is, there is little pick-up in market activities among these shares and this could result in the mixed conditions prevailing for longer due to the lack of follow-though buying interest,” it said.