KUALA LUMPUR (Sept 6): Inter-Pacific Securities Sdn Bhd said that after the recent strong upticks, the key FBM KLCI index could now be attempting to establish a base around the 1,600 points level amid optimism over the gradual re-opening of the country’s economy despite the still high nationwide Covid-19 cases.

In its daily bulletin today, the research house said that Malaysian equities performed above expectations on Friday to end the week on an upbeat note that also helped the key index to end the week virtually unchanged from the week earlier.

It said for the most part, however, market conditions were choppy, and it was again late buying on selected index-linked stocks that helped to lift the key index to a firmer close.

It added that many lower liners also ended the week of a sanguine note on bargain hunting actions to help market breadth return to the positive side.

Inter-Pacific said that thus far, the bouts of profit taking has been well absorbed with selective buying still providing the much-needed support.

“We think that the key index could still make some headway as it looks to fortify its position near the psychological 1,600 level, despite the buying interest easing slightly due to fewer compelling buying opportunities.

“The rotational buying likely to sustain the market’s near-term position and before the 1,600 level, the intermediate hurdle is at 1,595 points, while the supports remain at 1,580 and 1,570 points respectively,” it said.

The research house said many small cap and fledgling listed stocks have been inching higher of late and this trend looks to continue amid the ongoing rotational buying.

“However, we still think conditions could stay mixed due to the lingering concerns over the economic recovery prospects that would also preserve the choppy market conditions,” it said.