Friday 29 Mar 2024
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KUALA LUMPUR (Dec 7): Inter-Pacific Securities Sdn Bhd said with the market conditions remaining dour, dampened by fears over the new Covid-19 variant and the corresponding lack of new leads, the near-term outlook is likely to remain guarded with most market players opting to stay on the sidelines for the time being.

In its daily bulletin on Tuesday (Dec 7), the research house said Malaysian equities retreated further in tandem with the regional weakness as well as falling below the 1,500 psychological level again on concerns that the Omicron variant could dent the global economic outlook heading into 2022.

It said conditions stayed fragile with selling again dominating trades that saw losers three times more than gainers and only banking stocks were the gainers for the day.

It said traded volumes, meanwhile, were little changed from the previous trading session.

Nevertheless, Inter-Pacific said the gains on key overseas indices overnight could prompt some mild bargain hunting activities on local stocks.

It said this could provide some reprieve and help the FBM KLCI to mount a bounce from its oversold conditions, even as fresh buying interest is likely to stay low that may also keep the rebound mild due to the still largely cautious market undertone.

“On the upside, the hurdles are at the 1,490 and the 1,500 levels, while the supports are at 1,480 and 1,473 points respectively,” it said.

Inter-Pacific said the lower liners and broader market shares are also oversold, but any rebound is likely to be mild as most retail players will still be cautious ahead of the lift in transaction cost starting next month.

“Therefore, their insipid conditions will still be prevalent and is likely to keep these stocks subdued for longer,” it said.

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