In its daily bulletin on Thursday (Dec 16), the research house said there was volatility on the FBM KLCI on Wednesday, but it ended the day on a positive note that was helped by end-of-day haul on selective index linked stocks and to stay above the 1,480 level.
It said there was bargain hunting on glovemaker stocks as they emerged as the days biggest movers.
It said many lower liners and broader market shares also rose and this helped market breadth to turn slightly positive, adding that traded volumes were little changed from a day earlier.
Inter-Pacific however said with the selling pressure easing, this could allow for bouts of window dressing to emerge as the market rides on the overnight gains in key global stock indices that would also allow market players to temporarily cast aside concerns over the pandemic conditions and the potentially slower earnings growth next year.
It said this would also allow the key index to fortify its position above the 1,480 level as it also looks to head towards the next hurdle at the 1,490 level.
Thereafter, the psychological 1,500 level will be the resistance.
“Meanwhile, the 1,480 level is the immediate support, followed by the 1,475 level,” it said.
Inter-Pacific said the lack of following could also keep the lower liners and broader market shares subdued, and most of these stocks are likely to trend sideways for the time being.
“Even as the selling pressure has abated, there is still little impetus for these stocks to make significant headway over the near term,” it said.
