KUALA LUMPUR: Malaysia's benchmark index jumped on Tuesday as it partially retraced the losses made in the previous session after US President Donald Trump signalled the end of the Middle East war could be near.
The FBM KLCI climbed 10.68 points to 1,684.85 as the market opened for trading, reclaiming about a quarter of the 44 points lost during a frenzied sell-off yesterday as crude oil prices soared to the cusp of US$120 a barrel.
Brent crude futures have since moderated to US$98.96 a barrel, after assurances from Trump that battered Iranian forces will not be able to sustain the conflict for much longer.
In global equity markets, a rebound on Wall Street overnight led the relief as investors picked up bombed-out stock prices in the hopes of a rapid recovery once the armed conflict subsides.
In early Tuesday trading, South Korea's Kospi, which has been under seige by shortsellers, tracked the rebound to rise 5.92% to 5,564, while Japan's benchmark Nikkei 225 reclaimed 3.44% to 54,542
However, not all are convinced by Trump's efforts to calm the markets. Malacca Securities Research took a cautious approach in its report, anticipating the relief to be short-lived given Trump's unpredictable nature
For its sector pick, the research firm said the decline in oil price provides an opportunity to accumulate local banking stocks, given their fundamentals and attractive dividends.
On the FBM KLCI, the rebound in the banking sector was already underway with Maybank rising 22 sen to RM11.68. CIMB gaining 14 sen to RM7.91 and RHB jumping 17 sen to RM8.47.
Bargain hunters were also seen picking up IHH, up 15 sen to RM8.80, Tenanga Nasional gaining 20 sen to RM14.04 and Nestle climbing RM1.90 to RM104.50.
Among stocks seeing accelerated trading activity, AirAsia X
, which has been under the spotlight given the impact of fuel prices on its operating cost, rebounded 20 sen to RM1.30.
It sister company, Capital A, rose 3.5 sen to 44.5 sen.
