KUALA LUMPUR (Nov 11): Inter-Pacific Research Sdn Bhd said Malaysian equities continued to inch higher and ended Thursday (Nov 10) just a shade below the psychological 1,450 level on continuing nibbling by foreign institutional buyers.

In its daily bulletin on Friday (Nov 11), the research house said glove makers provided the support to the key index as they continued to attract bargain-hunting, but the broader market and lower liners were mixed with market breadth turning negative.

However, it said traded volumes continue to pick up pace and stayed comfortably above the three billion shares mark.

“There should be further near-term upside as tamer-than-expected US inflation strongly buoyed US markets overnight that should also permeate into Malaysian equities and allow the FBM KLCI to end the week on a firmer note.

“The more subdued inflation reading could also prompt the Federal Reserve to slow down the pace of its tapering, which is seen as a strong market catalyst,” it said.

The research house said that at the same time, market players are expecting the Malaysian economy to post a strong gross domestic product performance for the third quarter of 2022 that could also provide further near-term buying impetus.

“Therefore, the key index should clear the psychological 1,450 level, and could even take out the ensuing hurdles at 1,457-1,460 points.

“Thereafter, the next resistance is at 1,468 points, while the support levels are at 1,440 points and 1,435 points respectively,” it said.

Inter-Pacific said that similarly, the lower liners and broader market shares should reverse their mixed trend and post near-term gains to end the week on a positive note.

“The firmer Wall Street and prognosis of stronger Malaysian gross domestic product are also seen as the main near-term catalysts,” it said.