Market’s near-term environment likely to stay mixed, says Inter-Pacific

Market’s near-term environment likely to stay mixed, says Inter-Pacific
-A +A

KUALA LUMPUR (Dec 10): Inter-Pacific Securities Sdn Bhd said the market’s near-term environment is likely to stay mixed as there are still few noteworthy leads for market participants to follow with also fewer corporate developments ahead of the year-end.

In its daily bulletin on Friday (Dec 10), the research house said the FBM KLCI managed to post a rebound on Thursday and resumed its window dressing activities as well as regaining the 1,500 psychological level.

It said much of the recovery came towards the end of the day on selected buying of heavyweights and the gains were on thin volumes that slipped to just 2.7 billion shares for the day.

It said in the broader market, however, conditions were mixed with gainers just ahead of loser amid continuing profit taking and the lower market participation.

Inter-Pacific said that nevertheless, the window dressing activities could still dominate trades and allow the FBM KLCI to fortify its position above the psychological 1,500 level.

“Still, we see the buying interest remaining thin due to the prevailing market cautiousness ahead of next year’s lifting of equity transaction cost as well as the lack of leads.

“With the 1,500 level likely to hold, the window dressing activities may lift the FBM KLCI to the 1,510 level, before making a pass at the 1,520 level.

“The 1,500 level is the immediate support, followed by the 1,490 level,” it said.

Inter-Pacific said the lower liners and broader market shares may have found some near-term support, but with fresh buying remaining thin, the mixed-to-lower conditions could dominate trades over the near term.

“Therefore, most of these stocks are likely to see little movement as market players are likely to stay on the sidelines for the time being,” it said.