KLCI’s broadly directionless trend is likely to continue, says Inter-Pacific

KLCI’s broadly directionless trend is likely to continue, says Inter-Pacific
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KUALA LUMPUR (Sept 28): Inter-Pacific Securities Sdn Bhd said it sees little change to the immediate market outlook and the broadly directionless trend is likely to continue.

In its daily bulletin today, the research house said the FBM KLCI managed to end the day with minute gains following an end-of-day buying on selective index heavyweights that shored up the key index in an otherwise listless day.

It said the unveiling of the 12th Malaysia Plan failed to excite market players and left sentiments little changed.

It added that losers again topped gaining stocks for the day and in the broader market, trading was mixed due to the lack of leads with technology related stocks retreating on profit taking after last week’s big moves.

Inter-Pacific said most market players are still looking for more definitive leads, particularly on corporate earnings growth outlook before deciding on the next course of action.

“However, while fresh buying is still absent, so is the selling pressure as the market’s undertone is noticeably improved amid further easing of the pandemic conditions that has also lessened the need for movement restrictions.

“For now, we see the FBM KLCI remaining rangebound, hovering within 1,520 and 1,540 levels, with the interim support and resistance at 1,530 and 1,537 points respectively,” it said.

Inter-Pacific said the broader market could see a mixed trading environment as following on many of these stocks are still insipid, given that there are still lingering uncertainties over their longer term share price direction.

“ As such, the holding period remains short,and any gains are likely to be met by quick profit taking,” it said.