KUALA LUMPUR (Dec 31): Inter-Pacific Securities Sdn Bhd said the last trading day of the year is likely to see the market conditions remaining steady with few noteworthy leads for market players to follow and the participation rate is also likely to stay on the low side.
In its daily bulletin on Friday (Dec 31), the research house said profit taking activities emerged to leave the key FBM KLCI lower on Thursday as well as snapping its streak of gains.
It said banking stocks, which gained over the past few sessions, succumbed to profit taking and were the main losers.
Conditions elsewhere, however, it said remained mostly positive with many of the lower liner and broader market indices sustaining their gains, albeit milder, and helped market breadth to stay positive.
Traded volumes were little changed from a day earlier, it said.
Inter-Pacific said that consequently, stocks could drift further and trend within a tight range for most of the day.
However, does not discount the possibility of a last-minute lift on selected index heavyweights that would allow the key index to end the year at the 1,550 level.
“Meanwhile, the re-introduction of a capping to the equity stamp duty starting next week could provide some reprieve to market players and may help to bolster sentiments.
“Apart from the 1,550 resistance, there is an interim resistance at 1,547 points, while the supports are at 1,540 and 1,535 points respectively,” it said.
Inter-Pacific said the lower liners and broader market shares are also set for a rangebound trend over the near term due to the reduced market following as most market players are on their year-end break.
“Buying support will be mild and is mainly to keep these stocks above water and to end the year on a firmer note,” it said.