KUALA LUMPUR (Dec 9): Inter-Pacific Securities Sdn Bhd said with quick profit taking emerging, the FBM KLCI is in a state of flux again and may remain subdued for longer.
In its daily bulletin on Thursday (Dec 9), the research house said although the key index made a pass at the 1,500 level, it failed to hold as the key index stocks retreated on steeper-than-expected profit taking that also dampened its window dressing activities.
However, it said the lower liners and broader market shares extended their recovery with mild upsides that helped market breadth to stay positive.
It said technology stocks emerged as the main movers for the day on continuing bargain hunting, but traded volumes were lower, falling back below the 4.0 billion level.
Inter-Pacific said despite the slight improvement in market sentiments, there is a still a lack of fresh buying to sustain an upward trend as many market players are still cautious and keeping their wait and see stance.
It said that as a result, the key index could again be on a drifting mode with the lack of leads also prolonging the indifferent trend.
“This may also see the FBM KLCI staying close to the 1,500 level as it looks to build up a base following its recent retreat that has also left it at the lowest level since August last year.
“Apart from the 1,500 level, the other resistances are at the 1,507-1,510 levels.
“The supports, meanwhile, are at 1,490 and 1,483 points respectively,” it said.
Inter-Pacific said on the other hand, many of the lower liners and broader market shares have regained ground in the latest rebound.
“Nevertheless, their recovery was relatively mild with most market players also staying cautious for the time being.
“Further gains could also remain measured due to the continuing weak buying interest,” it said.