KUALA LUMPUR (Dec 8): Inter-Pacific Securities Sdn Bhd said the near-term outlook is likely to stay upbeat with the sustained gains on key overseas indices to continue fueling the FBM KLCI’s recovery from oversold.

In its daily bulletin on Wednesday (Dec 8), the research house said the FBM KLCI posted a firm rebound on Tuesday with the recovery buoyed by gains in overseas indices that cast aside the Omicron concerns.

It said much of the gains were attained the afternoon session with most index heavyweights regaining some traction on bargain hunting actions.

It said this helped traded volumes to climb above the 4.0 billion mark and gainers to outpace losers on a 2-to-1 ratio, adding that most of the lower liners also regained ground amid the improved market und ertone.

Inter-Pacific said this could also provide the impetus for the year-end window dressing activities to continue that would place the ongoing Omicron, fiscal tightening and concerns over the potential debt defaults among China’s property developers in the backburner for now.

However, it said the upsides could also be met by quick profit taking actions as traders could opt to close out some of their profitable positions even as the sustained gains should see the psychological 1,500 level cleared again.

“Beyond that level, the FBM KLCI’s next targets are at 1,507-1,510 points and the 1,520 level.

“On the downside, the supports are at 1,493 and 1,483 points respectively,” it said.

Inter-Pacific said the rebound among the lower liners and broader market shares were more measured on Tuesday as there were still some hesitations among retail players.

“Nevertheless, the improved near-term sentiments should help these stocks to mount further recoveries from their recent selldown, albeit the gains may be also met by quick profit taking actions,” it said.