KUALA LUMPUR: The FBM KLCI rose strongly on Monday, tracking Wall Street's Friday bounce as fears over AI's disruptive impact on the tech sector eased.
The benchmark index opened 11.91 points higher at 1,746.41, erasing all the losses made in the previous week.
However, TA Securitis noted a deterioration in the technical trend and momentum indicators following the previous week's correction, which heightened downside volatility in the near term.
"Bargain hunters remain hesitant to commit meaningfully in the absence of domestic positive catalysts.
"Externally, persistent concerns over stretched AI valuations and infrastructure spending that continues to outpace actual earnings are expected to weigh on sentiment in the near
term.
"Against this backdrop, investors should anticipate that the prevailing cautious trading mood will linger for another week, before bargain hunters gradually return to stabilise conditions and cushion the downside," said the research firm in its outlook.
Blue chips seeing a surge in recovery included Tenaga Nasional rising 14 sen ot RM14.08, Press Metal
gaining 10 snen to RM7.59, IHH climbing 16 sen to RM8.96 and YTL Power adding eight sen to RM3.15.
Meanwhile, top market actives included MMAG up 0.5 sen to 5.5 sen, Zetrix AI gaining four sen to 72.5 sen and AmBest adding one sen to 35.5 sen.
