According to Inter-Pacific, Market Conditions Are Projected to Remain Largely Dull

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According to Inter-Pacific Securities Sdn Bhd, market conditions are likely to remain mostly dull as there are few noteworthy leads to provide the push for persistent upsides, but the lifting of movement limitations should provide some support to the market as selling pressure eases.

The research house stated in its daily bulletin today that despite lingering in the negative territory for the majority of the day, the FBM KLCI recovered all intraday losses at the close of the day to close marginally higher in what was viewed as mild window dressing ahead of the end of the quarter.

However, it stated that the general trading environment remained mixed, with the broader market being sluggish, resulting in losers outperforming gainers for the day, albeit with their losses limited by bouts of support.

“Given the current environment, the major index is anticipated to remain muted and may potentially trade sideways between 1,520 and 1,550 for the time being.

“This may allow the major index to establish a base that might also serve as a springboard for future rises in the final quarter of the year, when a stronger economic recovery develops traction and more commercial activity resume.

“In the interim, support is located at 1,530 points, while resistance is located at 1,557 points above the 1,550 level,” it stated.

Inter-Pacific stated that its near-term outlook for lower liners and broader market shares remains unchanged, and we envision the majority of them making little progress.

“As it stands, there are few market catalysts available to provide the much-needed impetus, but there is also no need to sell given the recent improvement in market mood.

“As a result, the majority of these equities are anticipated to remain rangebound for the foreseeable future,” it stated.

Published by Zack Baharum

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