KUALA LUMPUR: While global stock markets extend a relief rebound, Apex Research warns that global equities are expected to remain volatile with a cautious undertone.
"This is characterised by intermittent relief rallies, but capped by uncertainty over growth and geopolitics," said the research firm in a note.
It said this is owing to global markets navigating a delicate balance between moderating growth and heightened geopolitical risks.
At the same time, tensions at the Strait of Hormuz are keeping oil markets on edge, although expectations that major economies may tap strategic petroleum reserves, alongside US President Donald Trump’s call to safeguard the critical route, have provided some relief to investors.
On the domestic market, it said the FBM KLCI is expected to trade range-bound with a slight positive bias, supported by firmer oil prices and rotational interest in defensives.
Upside may however be limited by mixed regional cues and lingering external headwinds, said the research firm.
"Investor focus will also be on the outcome of the ongoing Federal Open Market Committee meeting, with Triple Witching on Friday likely to heighten market volatility as derivatives expirations spur heavier trading and short-term price swings."
In early Wednesday trading, the FBM KLCI rose nearly 15 points to 1,725.91, erasing all the losses made since the start of the Iran war in early March.
Financial services stocks extended their recovery with the major banks lifting the blue-chip index. CIMB rose 10 sne to RM7.96, Maybank gained eight sen to RM11.68, RHB climbed 12 sen to RM8.47, Hong Leong Bank put on 20 sen to RM23, AmBank rose 12 sen to RM6.73 and Public Bank added four sen to RM4.90.
IHH Healthcare tacked on 27 sen to RM9.20 while Sunway climbed 17 sen to RM5.40.
Leading investor interest, Sunway Healthcare made its debut on the Main Market, putting on 37 sen to RM1.82 with market leading volume of 165.27 million shares done.
The positive sentiment on Bursa Malaysia was also witnessed across Asian market with Japan's Nikkei rising 1.83% to 54,684 and South Korea's Kospi gaining 3.44% to 5,834.
Across the causeway, Singapore's Straits Times added 0.64% to 4,967.
