Friday 29 Mar 2024
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KUALA LUMPUR (Dec 1): Inter-Pacific Securities Sdn Bhd said the new variant concerns will continue to dictate the market’s movements and with a vaccine manufacturer indicating that its vaccine could be less effective against the Omicron variant, there will still be considerable wariness over the near-term outlook.

In its daily bulletin on Wednesday (Dec 1), the research house said Malaysian equities rebounded on Tuesday after the market was sent lower on the emergence of a new Covid-19 variant.

It said the key index was quick off the blocks, jumping close to the 1,520 level but gave up much of its intraday bargain hunting gains at the end of the session as profit taking, particularly from foreign funds, took hold.

Inter-Pacific  said market participation remained brisk with nearly 6.0 billion shares traded, but gainers were only marginally ahead of losers as many lower liners also gave up their intraday gains.

At the same time, the research house said the Fed has hinted that it will start its tapering sooner-than-expected given that inflationary pressures are likely to stay elevated and this could further keep sentiments further in check.

“Consequently, conditions on the FBM KLCI are also likely to turn wary again and it could succumb to a new bout of selling with market players again retreating to the sidelines until there is fresh clarity on the market’s direction.

“The renewed selling could also threaten the 1,500-support level and it if gives way, the next support is pegged at the 1,490 level.

“On the other hand, the hurdles are at 1,520 and 1,530 points respectively,” it said.

Inter-Pacific  said the lower liners and broader market shares are also likely to endure similar conditions with the selling likely to return that could see the past two day’s gains disappearing due to the traders’ move to the sidelines.

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