Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 20): Inter-Pacific Securities Sdn Bhd said the near-term market conditions remain positive on the prognosis of firmer economic outlook in the last quarter of the year that is helped by the easing pandemic conditions.

In its daily bulletin on Wednesday, the research house said Malaysian equities continued to make headway, chalking up decent gains with rotational plays still dominating trades as foreign investors continue to be net buyers on Monday.

It said banking and construction stocks were the main movers, but commodity stocks took a breather after their recent rally.

Inter-Pacific said while the index heavyweights were mostly positive, many lower liner indices ended the day slightly lower on mild profit taking, albeit the overall market breadth managed to stay positive.

At the same time, it said the high commodity prices could continue to draw investor interest into these stocks as commodity prices are expected to stay elevated over the near-to-medium term.

“Although the upsides are still in the offing, the gains may also remain modest due to the already fair valuations of many stocks following their recent gains and this may prompt more mild profit taking activities as well as slowing the key index’s ascend.

“As such, the 1,610 level is the immediate target, followed by the 1,620 level.

“The supports, on the other hand, are at the psychological 1,600 level, and at 1,590 points,” it said.

Inter-Pacific said the near-term outlook among the lower liners and broader market shares are also positive amid the increased rotational plays to is set to continue over the near term.

“However, their upsides could also be measured as follow through buying is still lacking and this could also slow their near-term upsides,” it said.

      Print
      Text Size
      Share