KUALA LUMPUR (Sept 7): Inter-Pacific Securities Sdn Bhd said while it expects the key index to linger close to the 1,600 level, the efforts proved futile as profit taking actions were quick to materialise, leaving the FBM KLCI to drift lower after their recent big moves.

In its daily bulletin today, the research house said index-linked stocks succumbed to a new bout of profit taking at the start of the week to leave it further away from the psychological 1,600 level.

“Despite its weakness, however, the broader market and lower liners were mostly higher as rotational interest picked up, including a revival of technology related stocks on gains in global technology stocks.

“Nevertheless, traded volumes were little changed from last Friday as fresh leads were still far and in-between,” it said.

Inter-Pacific said although it sees the market’s undertone improving with the gradual re-opening of the country’s economic sectors, there is still caution over the key index’s near-term outlook due to the lingering pandemic conditions that could still delay a meaningful recovery.

“Therefore, the market’s volatility may also still endure for longer due to the continuing near-term uncertainties, albeit we think the downside risk has largely dissipated as the worst of the pandemic conditions should have passed.

“Meanwhile, the key index should be attempting to find near term support at the 1,580 level, but if it gives way, the next support is at 1,570 points. On the flipside, the resistances are at 1,590 and the 1,600 level respectively.

“Elsewhere, the lower liners and broader market shares should see further improvements as the economic re-opening theme will continue to draw traders’ interest.

“This would help to restore confidence to these stocks as well as sustaining their near-term upsides,” it said.