Fewer compelling buying opportunities for market players to follow, says Inter-Pacific

Fewer compelling buying opportunities for market players to follow, says Inter-Pacific
-A +A

KUALA LUMPUR (Sept 8): Inter-Pacific Securities Sdn Bhd said that after the recent strong gains among the index heavyweights, there are fewer compelling buying opportunities for market players to follow.

In its daily bulletin today, the research house said the FBM KLCI managed to end on a slightly positive note yesterday in what was seen as a largely directionless trading environment that resulted in the key index lingering within a tight band for most of the day.

It explained that there was more interest on the lower liners and broader market shares as retail players continue to bargain hunt on some of the beaten down sector leaders.

This helped market breadth to remain positive, albeit overall market interest was still moderate.

“As a result, conditions are turning increasingly indifferent with market players awaiting for further affirmation on the longevity of the key index’s recovery.

“This has also seen the fresh buying interest on the heavyweights subsiding somewhat that could curb further near-term upsides,” it said.  

Nevertheless, the research house said it still sees the key index remaining close to the psychological 1,600 level as the selling pressure has eased significantly due to gradual re-opening of the economy.

“This may allow the FBM KLCI to stay rangebound for the time being as it also looks to build up a base near the 1,600 level.

“Before the 1,600 resistance, there is an interim hurdle at 1,590 points, while the 1,580 level is still the immediate support, followed by the 1,570 level.

“Meanwhile, we still see the lower liners and broader market shares making headway as the mild bargain hunting looks to continue,” it said.

As it is, Inter-Pacific said retail players are inching their way back into the market, taking advantage of the calmer market conditions and this should continue to shore up their values further over the near term.