KUALA LUMPUR (Oct 11): Inter-Pacific Securities Sdn Bhd said market sentiments are continuing to build-up with the abating pandemic conditions that is permitting the re-opening of more business segments and lifting the country’s economic prospects going into the final quarter of the year.
In its daily bulletin on Monday, the research house said rotational plays came to the fore and allowed Malaysian equities to end the week on a positive note.
However, it said the key index was relatively subdued for most of the day, hovering within a tight range but ending the day with minute gains on mild end-of-day bargain hunting.
It said most lower liners and broader market shares were also higher amid the calmer market condition that also saw increased participation and allowing for market breadth to stay positive.
Inter-Pacific said that at the same time, the firmer crude oil and palm prices would provide further impetus for stocks in these sectors.
“Nevertheless, we think the way up could remain choppy as there will still be bouts of quick profit taking from last week’s gains and this may slow the key index’s near-term ascend.
“As such, the 1,670 level looks to be the near-term hurdle but if it is cleared, the ensuing resistance is at the 1,680 level.
“Meanwhile, the immediate support is at the 1,560 level, followed by the psychological 1,550 level,” it said.
Inter-Pacific said the rotational interest among the lower liners and broader market shares also look to continue as trading activities have been picking up of late.
“As it is, the more positive market undertone is encouraging more participants to return to the market with this trend likely to continue over the near term,” it said.