Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 30): Inter-Pacific Securities Sdn Bhd said after an extended selling streak, the market is ripe for a rebound from its oversold streak.

In its daily bulletin on Tuesday (Nov 30), Inter-Pacific said although the key index continues to head south on Monday, spooked by the emergence of the Omicron variant, it managed to end the day well off its low as bargain hunting activities emerged on some of the beaten down stocks.

The reserach house said there was also a flurry of activities with traded volumes jumping by 25% to over 6.0b shares for the day, albeit losers still twice the number of gainers as many of the lower liners and broader market shares still ended the day on a negative note.

Inter-Pacific said even as the Omicron variant concerns have not abated and will continue to dictate market conditions, near term bargain hunting could be in store as some bellwethers’ valuation are looking compelling.

Therefore, it said the bouts of fresh buying could sustain for now to provide the impetus for the key index to make a recovery.

“However, there could also be bouts of volatility as we also think that there could be quick profit taking actions that may slow the key index’s ascend.

“Nevertheless, the near-term positivity is likely to prevail as the key index looks to adjust from oversold that may also allow it to retest the 1,520 level.

“In the interim, there is a resistance at the 1,517 level, while the 1,500 level is still the major support for now, followed by the 1,490 level,” it said.

Inter-Pacific said the lower liners and broader market shares are also looking to rebound after their extended selling streak.

“Bargain hunting is emerging and should also continue over the near term that would help to arrest their recent selldown and to find some much need support,” it said.

 

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