FBM KLCI bounces back, surpasses 1,680 in early trade

KUALA LUMPUR: Bursa Malaysia saw a strong rebound in early trade on Tuesday, as bargain hunting helped the market recover the ground lost in yesterday's decline.

The FBM KLCI rose 4.43 points, or 0.26% to 1,682.73 at 9.16 am. The benchmark index opened 0.37 of a point lower at 1,677.82.

The US markets were closed for a holiday on Monday.

Among the gainers on Bursa Malaysia, Nestle jumped RM1.20 to RM104.80, Tenaga added 22 sen to RM14.78, United Plantations gained 20 sen to RM26.20 and Hartalega rose 11 sen to RM2.59.

PETRONAS Dagangan slid 36 sn to RM20, PPB Group fell 12 sen to RM14.58, Perak Corp lost 6.5 sen to 28 sen and Innity Corp declined six sen to 32 sen.

TA Securities said blue chips are likely to extend range-bound trade after the recent volatility, while investors assess key economic data from regional and North Asian countries for further market leads.

“Immediate index support remains at the recent correction low of 1,633, with 1,620 and 1,600 acting as stronger supports.

“Key resistance will be the recent high of 1,684, then 1,695, Dec 2020 high, followed by the 123.6%FP (1,702) and 138.2%FP (1,741) of the 1,369 low to the 1,638 high,” it said.

Meanwhile, Inter-Pacific Research said near-term market conditions are likely to remain indifferent amid the fewer immediate leads to lift the market higher, with market players also awaiting for more developments on U.S. interest rates for cues.

The research house also noted that the FBM KLCI appears to be reaching a peak following its strong run-up in recent weeks, with valuations now aligning with historical forward averages.

As such, it said the key index could continue to dither amid the lack of readily available leads but it could also be building up a base around the 1,650 and 1,680 levels.

“A firmer base could be vital to provide the key index with a springboard to potentially head higher towards the end of the year, particularly when there are more signs of the country’s economic undertone strengthening further.

“In the meantime, there is an interim support at 1,672 points, while the ensuing resistance is at 1,685,” Inter-Pacific said.