KUALA LUMPUR (Aug 19): Inter-Pacific Securities Sdn Bhd said market conditions are likely to remain mostly indifferent as the FBM KLCI appears to be toppish following its 7% rebound in July.
In its daily bulletin on Friday (Aug 19), the research house said Malaysian stocks were mostly rangebound amid the continuing profit taking on some of the heavyweights that made significant headway of late.
However, it said sustained buying by foreign funds helped to limit the day’s losses and kept the key index comfortably above the 1,500 level.
“Conditions in the broader market were also mostly directionless and this trimmed the fresh buying interest.
“Consequently, market breadth remained on the negative side, while volumes were relatively insipid,” it said.
Inter-Pacific said with fewer impetuses, and the ongoing results reporting season devoid of significant surprises, the wait and see conditions are likely to stay for the time being.
It said local funds are still trimming their stakes, but foreign funds could continue to provide the support to keep the key index mostly rangebound for now.
“The sustained support should also keep the key index above the psychological 1,500 level for the time being.
“In the interim, there are supports at the 1,510 and 1,505 levels, while the resistances are at 1,520 and 1,525 levels respectively,” it said.
Similarly, the research house said the sideway trend among the lower liners and broader market shares is likely to prevail for the time being as there is still little buying interest on these shares.
“As it is, leads are still far and in-between and that is likely to keep most retail players on the sidelines for longer,” it said.