KUALA LUMPUR: Bursa Malaysia is poised for a rebound after two straight weeks of losses although upside movement could be capped by downbeat sentiment over recent weak earnings.
At the start of trading, the benchmark FBM KLCI was up 0.84 points to 1,382.1.
According to Kenagna Research, investors may want to keep their eyes on oil prices in reponse to reent news that Saudi Arabia will reduce its oil output by one million barrels per day in July, while Opec+ plans to extend the previously announced supply cut until end-2024.
The research firm also cautioned that investors may remain in a selling mood following the end of the first-quarter earnings season, which was hit by more earnings disappointments than positive surprises.
"From a charting perspective, the FBM KLCI will likely strive to regain its footing after tumbling from a recent high of 1,438 on 8 May to 1,381 currently, falling 57.1 points or 4.0% along the way.
"With both the stochastic and RSI indicators due to climb out from the oversold territory, the benchmark index could attract buying support, possibly staging an intermediate technical rebound to plot a double-bottom reversal pattern (which coincides with its preceding trough of 1,373 that was hit in midOctober last year).
"We have adjusted our first support threshold to 1,355 (S1) while our immediate support-turned-resistance hurdle is currently seen at 1,395 (R1)," it said in its weekly technical review.
In early mornig trade, Kuala Lumpur Kepong rose 48 sen to RM21.70 while PETRONAS Gas gained 16 sne to RM16.68.
EP Manufacturing added five sen to 92.5 sen while MISC rose six sen to RM7.27.
Top active counters included Classita rising 1.5 sen to 13.5 sen, Bintai Kinden
ganiing 1.5 sen to eight sen and SCIB adding one sen to 25 sen.
Bumi Armada plunged 12 sen to 51.5 sen following the announcement late last Friday that its Kraken FPSO was shut-in following a mechanical failure.
