Bank stocks lift KLCI amid global rally

KUALA LUMPUR: The local market managed to shake off the negative sentiment and joined the global equities rally. 

At 9.10am, the FBM KLCI was up 6.6 points to 1,635.26. Trading volume was 296.25 million shares valued at RM101.98mil. There were 216 advancers compared to 59 decliners and 202 counters unchanged.

Banking stocks that had weighed down the market yesterday rebounded, tracking the performance of financial counters on Wall Street. 

Public Bank gained 12 sen to RM22.60 while Hong Leong Bank added 19 sen to RM20.16. Maybank climbed seven sen to RM9.27 and RHB Bank rose six sen to RM5.68.

In its pre-market open report, Kenanga research said that the technical outlook of the index remains cloudy. 

"The outlook of the index remains bearish as its 20-and-50 day SMAs crossed below its 100-day SMA," it said.

"However, we believe there is a possibility of a short technical rebound happening soon, as RSI enters into oversold territory. 

"Should a technical rebound happen, we look towards 1,660 (R1) and 1,700 (R2) as resistance levels. Conversely, support levels can be identified at 1,625 (S1) and 1,615 (S2)."

The FBM KLCI started the week at odds with the wider regional sentiment, falling 15 points on Monday even as key Asian markets surged on China's purchasing managers' index.

Bursa Malaysia's Tuesday rebound came on the back of Wall Street rallying on the positive manufacturing data that had come out of the US and China, easing fears of slowing economic growth.

Early opening Asian markets were also on the rise. Japan's Nikkei added 0.6%, South Korea's Kospi rose 0.4% and Australia's ASX200 climbed 0.8%.

Meanwhile, oil prices rose to a new 2019 highs as Washington considers more sanctions on Iran even as a key Venezuelan export terminal halted operations.

Brent crude rose 26 cents to US$69.27 a barrel, having earlier touched US$69.29, a new high for 2019. US crude futures rose 28 cents to US$61.87 a barrel, earlier reaching US$61.89, also a new high for 2019, Reuters reported.