Friday 29 Mar 2024
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KUALA LUMPUR (Dec 2): Inter-Pacific Securities Sdn Bhd said the near-term outlook remains frail, affected by the continuing concerns over the Omicron variant and the stubbornly high global inflation rate.

In its daily bulletin on Thursday (Dec 2), the research house said Malaysian stocks retreated once again with the pandemic concerns sending equities lower and reversing the gains they attained a day earlier.

It said the selling was especially pronounced among the index heavyweights as foreigners become the main sellers again, even as traded volumes slipping below the 4.0 billion shares level for the day.

Elsewhere, it said the lower liners and broader market shares also saw their prices retreating, resulting in the total losers outpacing gainers by more than a 2-to-1 ratio.

Inter-Pacific said market sentiments are also turning warier as a result and with many global indices also retreating, the selling is likely to sustain on Bursa Malaysia.

In addition, it said the FBM KLCI’s outlook is further clouded by its inability to hold on to the 1,500 psychological level and this could prompt further selling as more market players could opt to retreat to the sidelines.

“Under the prevailing market environment, the FBM KLCI’s immediate support at 1,490 may not even hold with the key index potentially retesting the 1,480 level due to the increased selling pressure.

“In the meantime, the main resistance remains at 1,500 points, followed by the 1,510 level,” it said.

Inter-Pacific said there appears to be little reprieve for the lower liners and broader market shares as well, and their downsides look to continue not only due to the weaker market sentiments, but also the significantly reduced interest from retail players.

“As a result, their weakness is likely to prolong that could leave most of these stocks to dither further,” it said.

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