Near-term market outlook remains insipid, says Inter-Pacific

Near-term market outlook remains insipid, says Inter-Pacific
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KUALA LUMPUR (Nov 9): Inter-Pacific Securities Sdn Bhd sees the near-term outlook remaining insipid as positive leads are still far and in-between that would leave most investors on the sidelines for now.

In its daily bulletin on Tuesday (Nov 9), the research house said although the key index managed to regain some ground on Monday, the broad market environment was relatively subdued with buying interest remaining thin due to the lack of leads.

The research house said it was left to selective buying on index heavyweights, mainly from overseas funds, to help the key index end the day on a positive note, while the broader market was mostly lower due to the lack of following.

It said as a result, losers were still ahead of gainers with traded volumes staying lackluster.

Inter-Pacific said as it is, market players are still scouring for noteworthy leads to follow and would now be looking to the upcoming results reporting season for cues.

It said in the interim, market participation is also likely to remain modest that could preserve the broadly sideway trend for longer as both bargain hunting activities and trading activities are likely to remain light amid the lack of leads.

“Therefore, the FBM KLCI is likely to hover within a tight range of 1,530 and 1,540 levels for now, while the other support and resistance levels are at 1,520 and 1,550 points respectively,” it said.

Inter-Pacific said the lower liners and broader market shares are also headed nowhere as gains are quickly met by profit taking activities that is making it difficult for these stocks to make a meaningful headway.

“At the same time, retail participation continues to thin with the lack of catalysts, and this is likely to see their sideway trend persisting,” it said.