Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 24): Inter-Pacific Securities Sdn Bhd said with domestic leads still in short supply, the FBM KLCI’s near-term market condition is likely to remain directionless that would also see fresh buying staying thin.

In its daily bulletin on Wednesday (Nov 24), the research house said the FBM KLCI lost ground on Tuesday amid the continuing market indifference where leads were still far-and in-between.

It said plantation stocks emerged as the day’s big losers, but healthcare stocks were the day’s big winners.

On the whole, however, it said selling activities continue to dominate as many lower liners and broader market stocks lost ground with total declining stocks nearly twice the number of gainers.

It said traded volumes also stayed below the 3.0b mark, albeit it was 10% more than a day earlier.

Inter-Pacific said this is likely to prolong the mostly sideway trend with the key index still trapped within a tight range of between the 1,520 and 1,530 points for the time being.

It said buying interest may also stay low with many market players adopting a wait-and-see stance ahead of the lift in equity transaction stamp duty starting next year.

“In addition, the ongoing results reporting season is providing few noteworthy leads and this could further leave market conditions in a state of flux.

“Apart from the above ranges, the other support and resistance levels remain at 1,515 and 1,540 points respectively,” it said.

Inter-Pacific said the weakness trend among the lower liners and broader market shares are continuing and with few signs of a reversal yet, the downside bias is likely to remain.

“As with the index heavyweights, there are also few catalysts to draw retail players back into the market and as such, the selling pressure is likely to remain dominant for now,” it said.

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