KLCI looks to end week on firmer note, says Inter-Pacific

KLCI looks to end week on firmer note, says Inter-Pacific
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KUALA LUMPUR (Dec 24): Inter-Pacific Securities Sdn Bhd said the FBM KLCI looks to end the week on a firmer note amid the sustained gains in overseas markets overnight that could also prolong the window dressing activities.

In its daily bulletin on Friday (Dec 24), the research house said Malaysian equities rallied on Thursday, buoyed by news that the Omicron variant may be less potent that allowed for the continuation of window dressing activities.

It said plantation and industrial products & services indices led the gainers with market breadth also staying on the positive side as many lower liners and broader market shares also tipped higher.

However, it said the gains were on low volumes of just shy of 2.0 billion shares for the day as most market players were still on the sidelines.

Inter-Pacific said market sentiments have improved on the back of the positive developments in the fight against Covid and this will help to shore up Malaysian equities further.

However, it said much of the gains will be from selected buying of index heavyweights and on low volumes as most institutional players are still on sidelines due to the holiday season.

It said there could also be some quick profit taking actions that may slow the upsides ahead of the Christmas break.

“This means that the 1,520 level will be the immediate hurdle and if it its breached, the ensuing resistances are at the 1,527-1,530 levels.

“On the downside, the supports are at 1,507 and the psychological 1,500 level respectively,” it said.

Inter-Pacific said that meanwhile, the lower liners and broader market shares could also make further headway, but the upsides are also likely to be measured due to the continuing lack of following.

“Therefore, most of these stocks are likely to remain broadly in a sideway trend for the time being,” it said.