KUALA LUMPUR (Oct 26): Inter-Pacific Securities Sdn Bhd said the directionless trend looks to continue over the near term as there are still few catalysts for market players to follow.
In its daily bulletin on Tuesday (Oct 26), the research house said market conditions stayed blasé on Monday with the FBM KLCI going nowhere as most market players opted to stay on the sidelines ahead of the Budget announcement at the end of the week.
It said that in addition, there was also few noteworthy leads to entice fresh buying and as a result, stocks continue to drift lower with the day’s total losing stocks still ahead of winning stocks on thin traded volumes.
Expectedly, most lower liners and broader market also shares stayed lackluster amid the waning interest, it said.
Inter-Pacific said as it is, investor interest has waned and many market players are likely to retain their wait-and-see stance ahead of the Budget announcement to see if new leads will be available.
It said with the fresh buying waning, the downside bias also looks to stay and may still preserve the mild profit taking activities for the time being.
“Nevertheless, there should also be some bargain hunting that should keep the market afloat to leave the 1,580 level the key support for now.
“Below that, the support is at 1,575 points, while the immediate resistance is at 1,590 points, followed by the psychological 1,600 level which also appears to be a major hurdle for the key index to clear,” it said.
Inter-Pacific said the lower liners and broader market shares also appear to be caught in a rangebound trend on the back of reduced retail following.
“With interest in these stocks still waning and with few signs of a change in their direction, there is no change to the near-term outlook with the insipid trend set to prolong,” it said.