KUALA LUMPUR (Nov 17): Inter-Pacific Research Sdn Bhd sees the near-term outlook for the FBM KLCI remaining soft as market players continue to shy away from the market as they await the outcome of the 15th general election.
In its daily bulletin on Thursday (Nov 17), the research house said Malaysian equities retreated further and slid below the psychological 1,450 level ahead of the upcoming elections on Saturday.
However, it said the key index managed to recoup most of its intraday losses towards the end of the session on mild buying support by local institutions.
It said conditions in the broader market were also relatively benign and market breadth remained on the negative side.
Meanwhile, it said market interest continues to thin with traded volumes slipping below the 2.5 billion shares.
“We see the near-term outlook remaining soft as market players continue to shy away from the market as they await for the outcome of the 15th general election.
“As it is, the election outcome is still difficult to ascertain, and this could keep market players on the sidelines for the time being,” it said.
Inter-Pacific said with the mostly cautious trend still dominating sentiments, the downside bias is also likely to be sustained and this could see the key index drift further away from the 1,450-level due to the thin buying support.
“This may lead the key index to the next support at 1,440 points.
“Thereafter, the support is lowered to 1,433 points, while the 1,450 level is the immediate hurdle, followed by the 1,453 level,” it said.
The research house said the lower liners and broader market shares are likely to stay mostly rangebound, but with the downside bias also remaining due to the low buying interest and continuing profit taking. Just like institutional players, retailers are also awaiting for the election outcome become charting their next course of action.