KLCI likely to remain broadly listless, says Inter-Pacific

KLCI likely to remain broadly listless, says Inter-Pacific
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KUALA LUMPUR (Dec 22): Inter-Pacific Securities Sdn Bhd said with investor interest still lackluster, the key index is likely to remain broadly listless even as the global equity market conditions have improved of late.

In its daily bulletin on Wednesday (Dec 22), the research house said the FBM KLCI ended Tuesday marginally lower despite starting the day on a positive note.

It said profit taking remained among the heavyweights that also kept the key index below the 1,500 psychological level as well as bucking the positive trend among its regional peers.

It said conditions in the broader market were also relatively subdued with traded volumes remaining below 2.5 billion shares traded for the day.

The research house said at the same time, market breadth stayed negative due to the lack of buying support.

Inter-Pacific said this could leave the key index to drift as it attempts to find a base around the 1,480-1,500 levels.

It said as it is, the selling has abated, but the lack of buying interest due to prevailing concerns over the Omicron variant and potentially muted corporate earnings in 2022 could keep most market players cautious for longer.

Nevertheless, it said there may be some bargain hunting in line with the gains in key overseas markets overnight, but the upsides could still be tepid due to the lack of fresh buying interest and the 1,500 level may prove to be a formidable level to clear.

“Apart from the above ranges, there is an interim support at 1,490 points, while above the 1,500 level, the other resistance is at 1,503 points,” it said.

Inter-Pacific said the broader market looks to head nowhere and is likely to remain rangebound due to the continuing low market participation.

“Apart from the year-end holidays, there is still cautiousness over the market’s direction heading into 2022 and this could keep interest on these stocks thinner for the time being,” it said.