KUALA LUMPUR (Nov 10): Inter-Pacific Securities Sdn Bhd said the continuing lack of catalysts, coupled with lingering concerns over corporate earnings performances will leave market sentiments on a low gear for longer.
In its daily bulletin on Wednesday (Nov 10), the research house said the weakness continued with the FBM KLCI succumbing to a fresh bout of selling as market conditions remained insipid on Tuesday.
It said the lower liners and broader market shares also followed suit as most market players remained on the sidelines due to shortage of fresh leads and sentiments staying mostly cautious.
As a result, it said losing stocks continue to dominate and more-than-double the number of gainers.
At the same time, it said traded volumes were also lackluster and little changed from the day earlier.
Inter-Pacific said this is resulting in many market participants remaining guarded and prolonging their wait-and-see stance until there is clarity on the market’s direction.
The research house said the upcoming unveiling of the country’s 3Q2021 GDP at the end of the week will be keenly followed as it could provide a gauge on the country’s economic prognosis going forward.
“In the meantime, the guarded market conditions could prevail that could also leave the market to drift further.
“The 1,520 level is the immediate support, followed by the 1,515 level before the psychological support of 1,500 points comes into play.
“On the other hand, the 1,530 level will be the next hurdle, followed by 1,535 points,” it said.
Inter-Pacific said just like the index heavyweights, conditions in the broader market are also likely to stay insipid due to the lack of leads.
“At the same time, interest in these stocks have whittled down significantly and this trend is likely to prolong due to the ongoing cautious market environment,” it said.