KUALA LUMPUR: The rebound on the domestic market is set to continue as tensions over the banking crisis continue to ease and investors look forward to expectations that the US Federal Reserve will raise the interest rate by a smaller 25 basis points margin at its upcoming meeting.
At the opening bell, the benchmark FBM KLCI was up 2.05 points to 1,408.60 as the US markets rose overnight on bets of a more dovish Fed amid the turmoil in the financial sector.
"Stocks should stage cautious recovery as contagion fears over the US regional banks and European banking confidence crisis ease, with hopes for a less hawkish stance from the US Federal Reserve on interest rates to repair sentiment," said TA Securities Research in a market commentary.
"Crucial index supports remain at the recent low of 1,391 and last October's low of 1,372, with stronger chart supports at 1,350, 1,320 and 1,300.
"Immediate overhead resistance remains at 1,450, followed by the 200-day moving average level at 1,465, with 1,500, then 1,512, and subsequently last August high near 1,528 as stronger resistance levels."
Meanwhile, oil and gas stocks could continue their bullish recovery amid rising crude oil prices.
The Bursa Malaysia Energy Index rose 1.3% to 805.72, after Brent crude jumped 1.7% overnight past the US$75 a barrel mark.
Bank stocks also continued to pace higher with Maybank gaining four sen to RM8.44 and CIMB rising three sen to RM5.22 although Public remained unchanged at RM3.99 and Hong Leong Bank was untraded.
Meanwhile, glove manufacturers were mixed after having been bought up in the previous session amid an increase in the average selling prices of gloves.
Top Glove rose 0.5 sen to 96.5 sen, Kossan gained one sen to RM1.31 and Hartalega
dropped one sen to RM2.98.
Among the lower liners, Supermax dropped one sen to 92.5 sen while Careplus rose 0.5 sen to 32 sen.
Of actives, Hong Seng was unchanged at 13.5 sen, Green Packet was up one sen to 5.5 sen and Bintai Kinden lost 0.5 sen to 7.5 sen.
