KLCI weak spell to continue over near-term as the downside pressure dominates, says Inter-Pacific

TheEdge Tue, Sep 21, 2021 08:31am - 2 years View Original


KUALA LUMPUR (Sept 21): Inter-Pacific Securities Sdn Bhd said with sentiments still on the frail side, the weakness spell looks to continue over the near-term as the downside pressure is still dominating.

In its daily bulletin today, the research house said the selling trend continued to dominate trades at the start of the week with losers overwhelming gainers by almost five-fold as market conditions were increasingly insipid due to the lack of positive leads.

It said lingering concerns over the purported introduction of a windfall tax and potentially weaker banking earnings due to an interest waiver on loans moratorium also kept conditions guarded, while fears of a contagion effect from Evergrande’s debt fallout further roiled market confidence.

“Concerns over the introduction of the new tax and potentially weaker banking earnings is unlikely to lift market confidence for the time being and could instead keep conditions insipid for longer.

“Glovemaker stocks could also endure more selling pressure due to their weaker growth prospects,” it said.

Inter-Pacific said furthermore, the contagion fears from Evergrande’s fallout could also keep the stockmarket in-check for longer.

“With the successive support levels breached, they are lowered further to the 1,520 and 1,513 levels.

“On the other hand, the hurdles are pegged at 1,535 and 1,540 points respectively,” it said.

Inter-Pacific said that similarly, the near-term outlook for lower liners and broader market shares are looking increasingly fragile amid the heightened uncertainties over the market’s direction.

“As such, the selling and profit taking activities are likely to continue for the time being as more players look to retreat to the sidelines until there is more clarity in the market’s direction,” it said.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Comments

Login to comment.