KUALA LUMPUR (Dec 15): Inter-Pacific Securities Sdn Bhd said after Tuesday’s (Dec 14) steep falls, market conditions are becoming more precarious as the FBM KLCI is tethering at the 1,480 level.
In its daily bulletin on Wednesday, the research house said the selling resumed on Bursa Malaysia (on Tuesday), sending the key index to its lowest level for the year as concerns over the Omicron variant returned that also resulted in most regional indices ending lower.
It said foreign funds increased their selling on selected heavyweights with the lower liners and broader market shares also following suit.
As a result, it said losers again overwhelmed gaining stocks by a wide margin and market participation stayed thin with total volumes again well below the 3.0 billion mark.
Inter-Pacific said sentiments remain frail and with the buying interest still anemic, the 1,480 level is under threat again.
At the same time, it said the thinner market interest is likely to see little buying support that could leave the key index vulnerable for longer.
“As such, the downside pressure is preserved that could send the FBM KLCI lower over the near term with the 1,480 support set to give way.
“Thereafter, the supports are at 1,475 and 1,450 points, while the resistances are at 1,490 and the psychological 1,500 levels respectively,” it said.
Inter-Pacific said although the lower liners and broader market shares have found some near term reprieve of late, their near-term outlook is also insipid as the weakness is sending more market players to the sidelines.
“There is no change to the near-term outlook and these stocks are likely to remain choppy for the time being, given that participation is thin and leads continue to be far and in-between,”it said.