KUALA LUMPUR (Sept 24): Inter-Pacific Securities Sdn Bhd said it sees the near-term gains sustaining into the end of the trading week as the market continues to rebound from its bout of oversold.

In its daily bulletin today, the research house said Malaysian equities mounted a solid bounce yesterday as bargain hunting activities picked-up pace, particularly from foreign sources.

It said that as it is, market sentiments improved due to the easing contagion fears from Evergrade’s debt issues and the Fed’s reiteration of its easy monetary policies.

It said this also allowed market players to cast aside the lingering concerns over the potential introduction of new taxes, adding that as a result, the gains were broad-based with gainers well ahead of losing stocks for the day.

“The economic re-opening theme would also remain in play, and this is likely to buoy market sentiments further.

“At the same time, the positive undertone in overseas indices could also provide some impetus for the index heavyweights to rebound further.

“With the key index closing-in on the 1,540 resistance, we expect it to be breached and potentially head towards the next hurdle at 1,547 points.

“Thereafter, the next resistance is at the psychological 1,550 level. Meanwhile, the supports are at 1,530 and 1,520 points respectively,” it said.

Inter-Pacific said the near-term outlook among lower liners and broader market stocks remains sanguine, particularly among technology stocks that are likely to be chased up further amid the continuing sector plays.

“Rotational interest is also picking up, as with retail interest that has been rising of late and this trend should sustain into the end of the week,” it said.