KUALA LUMPUR (Nov 24): Inter-Pacific Securities Sdn Bhd said that with domestic prospects still scarce, the near-term market situation for FBM KLCI is expected to remain without direction, which would also see new buys remain slim.
In its daily bulletin on Wednesday, November 24, the research house said the FBM KLCI lost ground on Tuesday amid continued market indifference where prospects were still far away and in between.
He said plantation stocks emerged as the big losers of the day, but health stocks were the big winners of the day.
Overall, however, he said selling activity continues to dominate as many lower headlines and larger market stocks lost ground with total declining stocks nearly double the number of winners. .
He said traded volumes also remained below the 3.0 billion mark, although they were 10% higher on the previous day.
Inter-Pacific said this will likely extend the mostly sideways trend, with the key index still trapped in a narrow range of 1,520 to 1,530 points for now.
He said buyer interest could also remain low, with many market participants taking a wait-and-see stance ahead of the stamp duty increase on stock transactions starting next year.
“Additionally, the current earnings reporting season provides few noticeable leads and this could still leave market conditions in a state of flux.
“Outside of the above ranges, other support and resistance levels remain at 1,515 and 1,540 points, respectively,” he said.
Inter-Pacific said the trend of weakness among lower lines and wider market shares continues and with few signs of reversal at this time, the bearish bias is likely to persist.
“As with the heavyweights of the index, there are also few catalysts to bring retail players back into the market and as such the selling pressure should remain dominant for the time being,” a- he declared.