KUALA LUMPUR: Bursa Malaysia rebounded in early trade as investors took to bargain-hunting for oversold counters.
At 9.18am, the FBM KLCI was up 1.87 points to 1,529.50.
Broader market sentiment was cautious, with 298 losers outpacing 159 gainers and 273 counters which traded unchanged.
“Despite the jittery market undertone, we continue to maintain our cautiously optimistic view and expect bargain hunting activities to emerge due to cheap valuations of Malaysian stocks and improving economic landscape in the country, while on the other hand, we remain cautious given the increasing market volatility around the world.
“As such we expect the benchmark index to trade within a range of between 1,530-1,540 for today,” Rakuten Trade Sdn Bhd said.
Overnight, the Dow Jones Industrial Average fell 0.89% to 34,715.39, the S&P 500 1.10% to 4,482.73 and Nasdaq dropped 1.3% to 14,154.02.
TA Securities said stocks should ease into a base building ahead of the weekend after recent profit-taking neutralised overbought momentum, and as regional sentiment improved after China cut interest rates to support its economy.
“Immediate index supports remain at 1,520 and 1,500, while key chart supports are at 1,470 and 1,452, the 50% Fibonacci Retracement (FR), which matched the Nov 2020 low.
“Immediate resistance stays at 1,580, while 1,600, 1,620 and 1,640 will be subsequent tougher upside hurdles,” TA Securities said, adding that Aemulus and Globetronics were ripe for an oversold rebound.
On Bursa Malaysia, Dutch Lady is the top gainer, rising 64 sen to RM32.82. Rapid rose 18 sen to RM9.03, Complete Logistics gained 15 sen to RM3.64 and Petronas Chemicals advanced 13 sen to RM9.08.
MPI tumbled 66 sen to RM39.36, Nestle shed 20 sen to RM132, Hong Leong Bank lost 18 sen to RM19.16 and Vitrox fell 16 sen to RM7.99.