KUALA LUMPUR: Sentiment on the domestic market continued to recover on Monday as the Wall Street indices all ended the previous week on a rebound amid newfound optimism in the US economy.
At the open, the FBM KLCI rose 5.43 points to 1,517.58
Altough investors remain watchful over more developments on the US trade front, the FBM KLCI's technical indicators are pointing towards a pick-up in the recovery momentum this week.
TA Securities Research said positive short-term technical momentum indicators suggest the late-week rebound should follow through this week as attractive bargain-hunting opportunities emerge following last week's heavy selloff.
However, it said the local benchmark should stay rangebound as market sentiment remains fragile as investors assess the escalating global trade tensions fed by the US government.
"As for the index, immediate support is maintained at 1,472, which represents the 38.2%FR of the selloff from the 1,896 peak (April 2018) to the 1,207 trough (March 2020) with next key retracement supports seen at 1,450, followed by 1,433.
"Meanwhile, on the upside, immediate resistance is set at 1,550, followed by 1,580, with tougher upside hurdle at 1,605," it said in its market commentary.
Meanwhile, Rakuten Trade said bargain hunters are expected to continue mopping up shares around the 1,500 mark and below.
"With the 'party' still ongoing in Hong Kong, we reckon Asean markets may experience some dull moments but will certainly make a comeback in due
course.
"For today, we anticipate the index to hover within the 1,510-1,520 range," it said in a note.
In early trade, big gains were seen in YTL Power, rising 14 sen to RM3.28, Gamuda jumping 11 sen to MR4.15 and Tenaga Nasional rising 14 sen to RM13.54.
Banks were also improved, with Maybank adding six sen to RM10.38, CIMB climbed 10 sen to RM7.17 and Public Bank rising three sen to RM4.51.
Of actives on the broader market, Saliran gained 1.5 sen to 24 sen, Sapura Energy
lost 0.5 sen to 4.5 sen and Nationgate added five sen to RM1.41
