KUALA LUMPUR (Nov 22): Inter-Pacific Securities Sdn Bhd said there could still be some mild upsides at the start of the week following Barisan Nasional’s resounding election win in Melaka that has increased hopes for an early election and potentially the return of more market friendly policies.

In its daily bulletin on Monday (Nov 22), the research house said Malaysian equities ended last week on a firmer footing as the key index posted minor gains last Friday and ending near the day’s high.

It said rotational buying on telco and banking stocks aided the FBM KLCI’s ascend, whereas the broader market and lower liners performances were mixed.

Nevertheless, Inter-Pacific  said market breadth tilted to the positive side even as traded volumes continues to stay anemic, lingering below the 3.0b mark due to the lack of buying interest.

At the same time, it said the key index has seemingly found support at around the 1,520 level that could serve as a springboard for more near-term upsides.

“While the upside odds have improved, the lack of market following could still curtail the gains as follow through buying interest remains low.

“Therefore, any recovery could be measured for the time being with the first hurdle pegged at the 1,530 level, before the 1,540 resistance comes into play.

“On the other hand, the 1,520 level is the immediate support, followed by 1,515 points,” it said.

Inter-Pacific  said the lower liners and broader market shares are also seeing some signs of revival, particularly among Small Cap listed stocks that are looking to find a base after their extended downtrend.

“This could set the stage for further near-term gains, but the upsides could still be limited due to the low market following,”it said.