Monday 22 Apr 2024
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KUALA LUMPUR (July 19): Inter-Pacific Research Sdn Bhd said Malaysian stocks regained traction on Monday as it rose to its highest level in nearly two weeks with the FBM KLCI also climbing back near to the 1,430 level.

In its daily bulletin on Tuesday (July 19), the research house said the recovery was in tandem with the ongoing calmness in global equities with bargain hunting emerging on energy stocks as oil prices regained the US$100/bbl mark.

It said the lower liners and broader market shares also rose with traded volumes on the rise again, while market breadth turned to the positive side.

Inter-Pacific said the near-term outlook has improved following Monday’s recovery and the key index will be attempting to build on the gains it attained.

“The continuing positivity should allow the key index to gain further traction as the FBM KLCI looks to break its downward streak that started in May and to also mount a sustainable recovery.

“This may allow the market to temporarily cast aside the prevailing economic concerns but depending on the level of fresh buying interest, the upsides could still be tempered by quick profit taking at first, before the key index makes some headway later in the session,” it said.  

The research house said the FBM KLCI’s next targets are at the 1,438-1,440 levels, followed by the 1,442 level. The supports, on the other hand, are at 1,425 and 1,420 points respectively.

“There were signs of positivity among the lower liners and broader market shares as they look to break their downward spell after a prolonged selldown.

“While it may be too early to suggest that a reversal is in store, it could still trim the prospects of further downside as these stocks look to find a base that could point to further near-term gains,” it said.

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