KUALA LUMPUR (Oct 18): Inter-Pacific Securities Sdn Bhd said the near-term outlook remains sanguine and market sentiment will continue to be buoyed by the combination of easing pandemic conditions, resumption of most economic activities and elevated commodity prices.

In its daily bulletin on Monday, the research house said Malaysian equities regained some ground last Friday after a brief pullback a day earlier to end the week just shy of the 1,600 level again.

It said there was also renewed mild bargain hunting from foreign funds that aided the key index’s recovery and the market’s breadth was positive on increased strong rotational play into property and construction stocks.

It said the rebound also saw higher participation with nearly 5.0b shares changing hands.

The research house said with many of the sector leaders already seeing their valuations nearing expensive levels due to their recent gains, rotational plays will continue to dominate trades over the near term.

“These activities will help to sustain the uptrend on Bursa Malaysia and could also allow the FBM KLCI to breach the psychological 1,600 level again, despite it being still near toppish levels.

“Above the 1,600 level, the next targets remain at 1,610 and 1,630 points.

“The supports, meanwhile, are at the 1,590 and 1,580 levels respectively,” it said.

Inter-Pacific said most lower liners and broader market shares have also powered higher last Friday, and their mild upsides should also continue over the near term.

“As it is, the more positive market undertone is drawing in more market players and this will further aid the rotational interest into these stocks,” it said.