KLCI could end week on subdued note, says Inter-Pacific

KLCI could end week on subdued note, says Inter-Pacific
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KUALA LUMPUR (Sept 10): Inter-Pacific Securities Sdn Bhd said yesterday’s weakness is keeping the key index further from the psychological 1,600 level which was earlier seen as a critical level to restore market confidence.

In its daily bulletin today, the research house said Malaysian equities retreated yesterday largely in tandem with the weakness in regional indices that were sent lower by renewed tapering fears.

It said profit taking was rampant among stocks that made significant headway recently like plantation and banking stocks.

Inter-Pacific said most stocks also ended the red as losers mor- than-doubled gaining stocks with many of the lower liners and broader market stocks retreating further on profit taking.

“With fewer impetuses, coupled with the waning buying interest, the near-term downside risk has also risen that could keep market sentiments in check for longer.

“Therefore, the FBM KLCI could end the week on a subdued note as profit taking could still be prevalent, particularly as more market players are resorting to a wait-and-see stance before re-entering the market.

“In the interim, the supports are now at 1,570 and 1,565 points respectively. The 1,580 level is the immediate resistance, followed by 1,590 points,” it said.

The research house said the lower liners and broader market shares also look to remain on a consolidation trend as follow through buying has largely dissipated after the recent gains.

“As such, selling could also remain the dominant trend over the near term as profit taking may continue due to the lack of fresh catalyst,” it said.