Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 14): Inter-Pacific Securities Sdn Bhd said although Monday’s (Dec 13) gains are welcomed to break the market’s dour trend, the near-term outlook remains indifferent.

In its daily bulletin on Tuesday, the research house said Malaysian equities regained traction on Monday but ended off its day high on quick profit taking.

It said much of the gains emanated from bargain hunting and mild window dressing activities in tandem with the strong gains in key overseas bourses late last week.

At the same time, it said firmer commodity prices also helped to shore up plantation stocks.

Market breadth was positive, but traded volumes stayed well below the 3.0 billion mark as most market players remained on the sidelines, it said.

Inter-Pacific said concerns over the Omicron variant and potentially slower earnings growth ahead could continue to weigh on market sentiments.

It said that in addition, there are also fewer noteworthy leads to encourage more market players back into the market and collectively, this could extend the key index’s drifting mode and keep the key index trending within the 1,480 and 1,500 points for the time being.

“There will still be mild buying support to keep the key index above 1,480 level for now, but the lack of fresh buying is likely to make the 1,500 level a formidable hurdle to break over the near term.

“The other support and resistance levels are at 1,490 and 1,507 points respectively,” it said.

Inter-Pacific said many of the lower liners and broader market shares are also finding support following their consolidation that started in October that has also left their prices near the year lows.

“With the abating selling pressure, these stocks could continue to find a base, albeit near term gains will also be difficult to come by due to the thin market interest,” it said.

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