Friday 01 Dec 2023
By /
main news image

KUALA LUMPUR (Oct 25): Inter-Pacific Securities Sdn Bhd said after breaching the psychological 1,600 level last week, the key index has failed to hold on to the gains in quick profit taking actions to leave the key index in a drifting mode again.

In its daily bulletin on Monday (Oct 25), the research house said profit taking remained prevalent on Malaysian equities last Friday as the key index ended the week virtually unchanged from a week ago.

It said the broad market environment remains insipid with buying interest remaining absent and the total trades of some 3.0 billion shares were among the lowest year-to-date.

It said the lower liners and broader market shares indices also remained mixed, but market breadth stayed negative as losers still overwhelm gainers by a wide margin.

Inter-Pacific said what is more telling is the lack of follow-through buying despite the easing pandemic conditions and the improved economic outlook that has instead left the FBM KLCI on the downtrend.

“With the wait-and-see approach looking to continue ahead of the Budget announcement at the end of the week, the sideway trend is likely to prevail for the time being.

“There should still be bouts of supports to keep the key index above the 1,580 level, but with fresh buying largely absent, the near-term target remains at the 1,600 level, which may also prove to be a significant hurdle for the key index to clear for the time being.

“The other support and resistance levels are at 1,575 and 1,595 points respectively,” it said.

Inter-Pacific said buying interest on the lower liners and broader market shares have also evaporated of late with many retail players awaiting fresh leads to emerge.

“This has resulted in more players retreating to the sidelines and profit taking coming to the fore.

“With the indifferent trend looking to prolong, most of the above shares are also likely to drift for longer,” it said.

      Text Size