KUALA LUMPUR: Bursa Malaysia tracked the relief rally in overnight markets as ailing First Republic Bank received an infusion from Wall Street's largest lenders, helping to avert further fallout in the US financial sector.
While markets remain jittery amid the ongoing liquidity shortage in US banks, investors turned hopeful that a burgeoning crisis could persuade the Federal Reserve to shift its outlook on monetary policy at its meeting next week.
At the opening bell, Malaysia's benchmark FBM KLCI was up 5.68 points to 1,397.29, which is not nearly enough to erase the deep losses experienced over the course of the week.
TA Securities Research said the jittery sentiment should persist ahead of the weekend, with the cautious outlook on the US banking sector and uncertainty over the US Fed's stand on interest rates and inflation management clouding sentiment.
"On the index, last October's low of 1,372 will act as crucial support preventing further downside, with stronger chart supports seen at 1,350, 1,320 and 1,300 in the event of a breakdown.
"Overhead resistance remains at 1,450, followed by the 200-day moving average at 1,468, with 1,500, then 1,512, and subsequently last August high near 1,528 as stronger resistance levels," said the research firm in a commentary.
Local bank stocks picked up on the market rebound, with Maybank gaining seven sen to RM8.33, Public Bank adding four sen to RM3.97 and CIMB rising three sen to RM5.18. Hong Leong Bank fell four sen to RM19.86.
However, the Bursa Malaysia Financial Services Index remained submerged in December 2021 levels of trading following the plunge over the course of the week.
Meanwhile, the buying interest in glove stocks extended for a second day.
Top Glove was seen rising 1.5 sen to 85 sen following a sharp increase in share price in the previous session, on the heels of its latest quarterly result announcement.
Sector peer Hartalega
gained one sen to RM1.79 while Careplus was unchanged at 27 sen.
In consumer-related counters, F&N rose 58 sen to RM25.78 and Heineken gained 40 sen to RM28.86 and Ajinomoto rose 20 sen to RM14.80.
