KUALA LUMPUR: Bursa Malaysia ended the morning session on a positive note amid a lack of catalysts and worries over the tensions between the US and North Korea.
At 12.30pm, the benchmark FBM KLCI gained 3.56 points to 1,770.52. The index opened 0.45 of-a-point easier at 1,766.50 this morning. There were 347 gainers and 336 losers while 344 unchanged. About 651.08 million shares, valued at RM569.36mil, changed hands.
Hong Leong Investment Bank Research (HLIB) said FBM KLCI may be due for a technical rebound, but upside capped along 1,770-1,775 points level.
“We believe that the environment could have stabilised at the moment following a knee-jerk reaction last week and investors may look for opportunity this week on oversold stocks for further technical rebound possibility,” it said.
HLIB said investors could be focusing on the Fed’s meeting minutes that will be released on Wednesday.
“Similarly, on the local front, sentiments might turn marginally positive after the heavy selling activities last week. The FBM KLCI could be due for a technical rebound and might trade towards 1,770 over the near term amid bargain hunting tone from the investors,” it added,
Last week, key regional markets went into a selling mode after tensions between US-North Korea escalated week. Most of the investors took the chance to take the profits off the tables and increased exposure within safe haven assets.
Top gainers on Bursa Malaysia included KESM which added RM1.22 to RM15.04, Panasonic Manufacturing
rose 36 sen to RM37.30 and Malaysian Pacific Industry gained 34 sen to RM13.10.
The decliners included Batu Kawan, Success Transformer and MB World Group.
Meanwhile, Reuters reported that Asian stocks bounced on Monday after three straight losing sessions, tracking a firmer Wall Street, while the dollar was capped by tensions on the Korean peninsula and doubts that the Federal Reserve will hike interest rates again this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%. It had lost 3% over the previous three sessions as tensions escalated between the United States and North Korea.
South Korea’s KOSPI climbed 0.6%, Hong Kong’s Hang Seng was up 0.9% and Shanghai added 0.7%. Japan’s Nikkei 225 bucked the trend and fell 1%.
Reuters said geopolitical risks were expected to remain a key theme for the global markets in the near term, as North Korea celebrates Liberation Day on Tuesday to mark the end of Japanese rule.
Investors also braced for tensions ahead of Aug. 21, when an annual joint U.S.-South Korean military exercise is due to begin.
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