KUALA LUMPUR (March 29): Inter-Pacific Securities Sdn Bhd said the buying interest appeared to have diminished on the back of the lack of new leads and the directionless trading environment looks to persist over the near term.
In its daily bulletin on Tuesday (March 29), the research house said with fewer catalysts, the market is likely to stay fluid and most market players are likely to remain on the sidelines for the time being.
It said mild bargain hunting could still emerge, but with the reduced market participation, any upside will be minimal and the 1,600 level may remain a difficult target to breach convincingly over the near term.
“Above the 1,600 level, the other hurdles are at the 1,606-1,610 levels, while the supports remain at 1,595 and 1,590 points respectively.
The research house said that after an extended uptrend, the lower liners and broader market shares are starting to show signs of a consolidation.
“This could be a prelude to further pullbacks as the profit taking activities may continue due to the fewer market leads,” it said.