Sentiments have improved amid firmer commodity prices, says Inter-Pacific

Sentiments have improved amid firmer commodity prices, says Inter-Pacific
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KUALA LUMPUR (Oct 8): Inter-Pacific Securities Sdn Bhd said despite Thursday’s hesitation, sentiments have improved of late amid the firmer commodity prices that headed the Malaysian equity market’s revival.

In its daily bulletin on Thursday, the research house said the key index managed to close with minute gains overnight with an end-of-day haul on selected index heavyweights in an otherwise mixed trading session.

It said profit taking was prevalent following the hefty gains a day earlier as oil & gas stocks retreated, but the plantation stocks’ rally continued.

The research house said many of the lower liners and broader market shares were also higher as fresh buying interest returned that helped some laggards to make headway.

Inter-Pacific said with conditions still looking sanguine, further near-term gains are in the offing with the commodities play to still provide the impetus and rotational interest to also pick-up.

It explained while profit taking could still temper some of the gains, the upside bias should prevail as there appears to be sustained following from foreign institutions that would also provide the much-needed market support.

“Furthermore, the calmer overseas market sentiments will also give some booster to the local market environment.

“On the upside, the FBM KLCI may target the 1,570 level, followed by 1,576 points, while the 1,560 level is the immediate support.

“Thereafter, the support is at the 1,550 level,” it said.

Inter-Pacific said the lower liners and broader market shares are also looking to firm up further and could end the week on another positive note.

“Interest in these stocks is picking up and should fuel the sustained gains, albeit there will still be bouts of profit taking that could slow their ascend,” it said.