KUALA LUMPUR (Dec 29): Inter-Pacific Securities Sdn Bhd said the improved market sentiments should allow Malaysian equities to make further headway over the near term, but also at a slower rate after the key index gained some 4.0% over the past few sessions.

In its daily bulletin on Wednesday (Dec 29), the research house said there were further gains on Bursa Malaysia on Tuesday with the continuation of window dressing activities that lifted the key index to the 1,540 level.

Inter-Pacific said it was mainly banking stocks that provided the push for the key index to head higher this time, while the lower liners and broader market shares also followed suit.

As a result, it said most stocks stayed in the positive territory for the day, but traded volumes remained thin as most market players are on their year-end holidays.

Inter-Pacific said bouts of profit-taking may emerge, even as fresh buying interest is seen, that could slow the market’s ascend that has been helped by the prognosis that the new Coronavirus variant is likely to be less severe.

Meanwhile, it said rotational interest could also pick-up pace as market players switch to laggards of the recent run-up.

“The immediate hurdle is at 1,545 points, followed by the psychological 1,550 level.

“On the downside, the supports are pegged at 1,534 and 1,530 points respectively,” it said.  

Inter-Pacific said similarly, the lower liners and broader market shares’ ascend could slow due to rotational and profit-taking moves over the near term.

“Nevertheless, their upsides are still preserved for now even as the way up could become choppier,” it said.