KUALA LUMPUR: The FBM KLCI rebounded in early trade on bargain hunting, even as investors remained cautious amid ongoing geopolitical tensions and volatile global oil prices.
The FBM KLCI rose 12.23 points, or 0.72% to 1,720.62 at 9.21 am, after opening up 13.74 points at 1,722.50 earlier.
Among the gainers, Hong Leong Bank rose 44 sen to RM22.90, Heineken added 38 sen to RM22.58, F&N climbed 28 sen to RM30.00, and Nestlé gained 28 sen to RM98.70.
On the downside, PETRONAS Chemicals slid 30 sen to RM5.50, Batu Kawan fell 22 sen to RM19.58, KLCC eased 11 sen to RM7.30, and Kumpulan H & L High-Tech declined 7.5 sen to 57.5 sen.
Overnight, Wall Street fell as investors weighed rising oil fears against tentative progress on ending the US-Israel conflict with Iran, despite reports of more US troop deployments to the Middle East.
The Dow Jones Industrial Average fell 0.18% to 46,124.06, the S&P 500 lost 0.37% to 6,556.37 and the Nasdaq Composite lost 0.84% to 21,761.89.
Berjaya Research said the FBM KLCI could stage a technical rebound, supported by bargain hunting and improving participation as market activity normalises after the festive period. However, the near-term outlook remains cautious amid lingering external uncertainties.
It added that volatility in global energy markets and persistent geopolitical risks may cap upside.
The research house advised investors to closely monitor oil price developments, particularly inventory trends in the upcoming US Energy Information Administration release, as fluctuations could influence inflation expectations, subsidy dynamics and overall market sentiment.
“Technically, the FBM KLCI has formed a bearish candlestick, suggesting the bearish undertone could remain in place.
“Key support levels have now shifted to the 1,700 psychological level, followed by 1,685 points. Meanwhile, 1,720 points and 1,737 points will serve as the immediate resistances,” Berjaya Research said.
Meanwhile, Apex Securities said Malaysian markets may remain under near-term pressure amid cautious sentiment, though firmer crude oil prices could support select index-linked and energy stocks.
“Going forward, both global and Malaysian markets are likely to stay headline-driven, with geopolitical developments and commodity trends remaining as key catalysts,” the brokerage said.
Apex Securities favours export-oriented sectors amid geopolitical tensions and currency volatility.
It added that higher oil prices may support energy and plantation stocks, while defensive yield plays such as utilities remain attractive as investors seek stability in a volatile environment.
