While the World Health Organization has guided that it continues to study the virulence and severity of the new Covid variant, investors remain watchful over any potential outbreaks that could lead to further economic lockdowns and borders closing.
At 9.05am, the FBM KLCI was up 3.88 points to 1,514.45, retracing some of the losses seen since panic over the new virus strain crept into the market last Friday.
"We believe the overnight positive performance on Wall Street may provide some buying support on the local equities as we think the selling pressure is overdone at least for the near term, contributing to oversold signals and hammer signals on most of the stocks," said Malacca Securities Research.
It noted also some economist claims that the economic impact stemming from the Omicron variant will be less severe than that seen in 2020.
On Bursa Malaysia, glove stocks had surged over the previous two sessions on speculation that a prolonged health crisis would elevate demand for latex gloves. However, as investor nerves calmed, profit-taking set in.
Leading glove counter Top Glove shed 15 sen or 4.7% to RM3.04 after soaring over 40% in the last two trading days. It was the third most traded counter on the local stock exchange with 24.46 million shares exchanging hands.
A similar price action was seen in Hartalega, which dropped 15 sen to 2.2% to MM6.26 in early Tuesday trade after its valuation jumped by about a quarter in recent days.
In other glove players, Supermax slid 10 sen to RM2.05, Kossan shed seven sen to RM2.28, Comfort Gloves dropped seven sen to RM1.29, Rubberex fell four sen to 67.5 sen and Careplus lost seven sen to RM1.25.
Meanwhile, aviation counters also bounced higher as Malaysia Airports rose seven sen to RM5.87 and AirAsia gained five sen to 92 sen.
Meanwhile, bank counters recovered slightly as the corporate earnings period reached its final day.
Public Bank was up one sen to RM3.97 after slipping in the previous day following its earnings report. Maybank was down one sen to RM8.94 while Hong Leong Bank remained untraded.
CIMB was unchanged at RM5.11, ahead of its earnings results scheduled for release later today.
Meanwhile, tech counters were in play following the strong bounce on Wall Street overnight. MPI jumped RM1.46 to RM50.32, KESM rose 26 sen to RM12.90 and Unisem gained 13 sen to RM4.28.