KUALA LUMPUR: Bursa Malaysia rebounded in early trade as investors took to bargain-hunting for oversold counters following the decline in the past few trading sessions.
At 9.06am, the benchmark index rose 6.82 points to 1,419.86. The index opened 0.18 of-a-point lower at 1,412.86.
Overnight, the Dow Jones Industrial Average fell 1.11% to end at 29,260.81 points, while the S&P 500 lost 1.03% to 3,655.04. The Nasdaq Composite dropped 0.6% to 10,802.92.
According to TA Securities, the local market should extend correction given the bearish technical and weak buying momentum, and fragile external market tone with fears over an imminent global recession dampening investor sentiment.
“Key index support from the July low of 1,408 must hold to prevent a further selloff to next crucial support at 1,394, with better key chart supports at 1,370, 1,350 and 1,323, the 23.6%FR level.
“Immediate overhead resistance remains at 1,450, then 1,480 and 1,500, followed by a recent high of 1,512, with significant resistance from the August high near 1,528,” the research house said.
Rakuten Trade said though the local bourse is in oversold territory, sentiment had turned cautious thus expecting limited upside for local equities and seeing the index to hover within the 1,405-1,420 range today.
“We expect commodities-related stocks to encounter some headwinds today with the heightened volatility between the global currencies. Meanwhile, the Brent crude price has slipped to US$84 per barrel on recessionary fears,” it added.
Among the gainers on Bursa Malaysia, Nestle rose 50 sen to RM128.30, PPB gained 30 sen to RM16.22, PETRONAS Gas added 24 sen to RM16.50 and Kuala Lumpur Kepong climbed 18 sen to RM20.66.
F&N shed 56 sen to RM21.74, Panasonic Manufacturing eased 32 sen to RM22.50, Hong Leong Financial Group declined eight sen to RM18.62 and Hong Leong Bank fell 12 sen to RM20.46.