KUALA LUMPUR: The FBM KLCI bounced back after the previous day's profit-taking as investor optimism in banks held firm on optimism over the economic growth performance.
While there was selling pressure in the previous session, there was a rotation of interest from banks into technology, energy and the small-cap space on positive breadth, suggesting a broadering of the GDP-driven rally, said Apex Securities.
"The 5.8% growth print continues to underpin the domestic story," said the research firm in its outlook.
At the opening bell, the FBM KLCI was up 3.33 points to 1,725.62, shaving the nine-point decline from the previous day as investors took cash out of the recent bank rally.
The country's heavyweight banks found their footing on Tuesday - Maybank rose four sen to RM11.06, RHB added two sen to RM8.29 and Hong Leong Bank gained six sen to RM22.30 but CIMB was down two sen to RM7.73.
Apex said technology counters may extend their rebound if regional sentiment steadies, though conviction is likely to stay thin until Seoul's AI-linked selling runs its course.
"Energy names could remain supported with Brent near US$89 and the conflict unresolved, keeping upstream producers and services counters in focus.
"Banking heavyweights may see further near-term profit-taking after leading the GDP rally, though dips should find institutional support given the growth backdrop.
"Plantation is worth watching after CPO futures firmed to RM4,643 (a tonne), while utilities and rate-sensitive counters could stay soft as elevated oil keeps inflation concerns alive."
The top traded stocks were Aimax up 0.5 sen to 1.5 sen, Stratus Global surging RM1.12 to RM1.92 and GIIB gaining two sen to 53.5 sen.
Stratus Global made its trading debut on the Main Market after a successful RM285mil initial public offering, which will fund its business expansion in Penang and overseas.
