KUALA LUMPUR: Bolstered by another positive showing on Wall Street, equities on Bursa Malaysia maintained their recovery on Tuesday.
The benchmark FBM KLCI rose 3.15 points to 1,484.01, extending a rebound for a third straight day as investors continue to pick up bargains in the oversold market.
According to analysts, the state visit by Chinese President Xi Jinping to Malaysia is also serving to lift investor sentiment.
"With President Xi’s arrival in Malaysia today, we expect bullish momentum in the FBM KLCI to persist on hopes of increased Chinese investments," said Malacca Securities Research in a note.
The research firm also noted that China has halted the export of rare earths to the US, giving Malaysia leverage in negotiations for tariff relief during the 90-day pause as it hosts the world's largest rare earths processing facility outside of China.
Meanwhile, TA Securites noted that stocks are likely to extend gains due to ongoing recovery plays, while investors pay close attention to President Xi's visit for cues on future trade relations.
"Immediate support is retained at the 1,400 psychological level, with stronger supports at the June 2023 low of 1,369 followed by 1,320.
"Immediate resistance is maintained at 1,490, which represents the 38.2%FR of the rally from the 1,369 low (June 2023) to the 1,684 peak (August 2024), with next upside hurdles seen at
the 50%FR (1,527) and the 61.8%FR (1,564)," said the research firm in a market commentary.
