Bursa Malaysia makes a slight rebound amid bearish outlook

KUALA LUMPUR: Bursa Malaysia managed a tentative rebound on Monday morning following last week's downturn in sentiment and widespread losses in global equities. 

Meanwhile, trading on the local stock exchange this week is expected to be muted as investors stay on the sidelines ahead of the tabling of the national budget this Friday.

In early markets, Japan's Nikkei pushed 1% higher in its first hour of trade while Australia's ASX200 rose 0.66%

At 9.14am, the FBM KLCI was up 1.28 points to 1,684.34. Turnover was 179.4 million shares traded valued at RM75.34mil. There were 123 gainers versus 140 decliners and 173 counters unchanged.

According to Kenanga Research, the outlook of the local index remains bearish as it remains below the 1,700 psychological support line.

"Key Indicators, meanwhile, remain in negative states, showing no sign of short-term recovery.

"Immediate support levels to watch are 1,658 (S1) and 1,614 (S2), where some bargain hunting activities are expected, although a break below 1,614 would be highly negative.

"Should market sentiment improves, key levels of resistance to look for are at 1,700 (R1) and 1,735 (R2)."

Seeing active early trade, Gamuda is back on investors' radar after having its MRT2 tunneling works contract reinstated, albeit for a lesser contract value. The stock rose five sen to RM2.52. 

Among other top active stocks, Seacera gained 2.5 sen to 18 sen while Tat Giap rose 1.5 sen to 18 sen.

Heavyweights that are seeing momentum include TNB, advancing six sen to RM14.10 and IHH adding seven sen to RM4.87. Hong Leong Bank led losses with a 16 sen slide to RM20.52. 

MPI continued to see downwards pressure, dropping six sen to RM11.04 while Vitrox shaved seven sen to RM7.52 and Unisem dipped six sen to RM2.87.

Prices remained steady in oil markets, tracking the early recovery in global equities. Brent crude  futures was up 15 cents to US$77.77 a barrel while West Texas Intermediate crude futures wa up 30 cents to US$67.89 a barrel.