KUALA LUMPUR (Dec 13): Inter-Pacific Securities Sdn Bhd said the near-term outlook is likely to stay in a low gear with the Omicron concerns and the lack of impetus to keep the Malaysian equity market subdued.
In its daily bulletin on Monday (Dec 13), the research house said Friday’s early morning bounce came to naught as glovemaker stocks took a dive in the afternoon session following Top Glove Corp Bhd’s less-than-stellar results, sending the key index back below the 1,500 level.
It said sentiments also turned weaker in tandem with the insipid performance of key global stock indices.
As a result, it said traded volumes remained below the 3.0 billion level with the lack of following also sending most of the broader market shares lower and losers continuing to dominate gainers by a wide margin.
Inter-Pacific said these concerns could also weigh on market sentiments and may leave the FBM KLCI on a drifting mode for longer.
It said while window dressing activities are still in the offing, it could be watered down as the gains may be met by increased selling actions and the lack of buying support as the market undertone is still largely cautious.
“Under the prevailing environment, the key index could still be attempting to stay above the 1,480 support, but choppiness will remain a feature that could dampen the market’s performance.
“Before that, there is a minor support at 1,484 points.
“The hurdles, meanwhile, are at 1,490 points and the psychological 1,500 level respectively,” it said.
Inter-Pacific said the lack of following is likely to keep most of the lower liners and broader market shares muted for longer.
“Although many of these stocks have found some measure of support following their incessant falls, fresh buying interest is likely to stay thin as most market players are still adopting a defensive stance for the time being,” it said.