Near-term market looks to stay indifferent, says Inter-Pacific

Near-term market looks to stay indifferent, says Inter-Pacific
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KUALA LUMPUR (Nov 8): Inter-Pacific Securities Sdn Bhd said the near-term market outlook looks to stay indifferent as market players await for fresh catalysts to emerge to provide it with a new direction.

In its daily bulletin today, the research house said Malaysian equities managed to end the week virtually unchanged after the key index hovered in the negative territory for much of Friday with late buying support shoring up the key index at the end of the trading session.

It said while conditions were largely mixed, the technology index emerged as the biggest winner for the day, but total losers were still ahead of gaining stocks as trading on many of the lower liners and broader market shares were still insipid.

Inter-Pacific said that in the interim, concerns over the imposition of a windfall tax and higher stamp duty on share transactions would keep sentiments cautious for longer and leave Malaysian equities mostly decoupled from the performance of overseas indices.

“Consequently, local stocks are likely to stay subdued for now as it will be attempting to find some measure of stability after the market’s negative reaction to some of Budget 2022’s proposals.

“There immediate support is at the 1,530 level, followed by the 1,520 level.

“The resistances, meanwhile, are at 1,545 and 1,550 levels respectively,” it said.

Inter-Pacific said investor interest on the lower liners and broader market shares are also looking insipid and this is likely to see these stocks staying mixed-to-lower in the near term.

“As it is, there are still few noteworthy catalysts for market players to follow and this will keep most retail players on the sidelines for now,” it said.