Bursa Malaysia rebounds on bargain hunting

KUALA LUMPUR: Bursa Malaysia was slightly higher in early trade today as bargain hunting emerged following yesterday's selloffs due to cautious market sentiment.

At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.34 points to 1,449.3 from 1,447.96 on Monday.

The market bellwether opened 1.24 points easier at 1,446.72.

However, on the broader market, losers led gainers by 134 to 119, while 164 counters were unchanged, 1,881 untraded, and 14 others suspended.

Turnover stood at 191.27 million units worth RM66.35 million.

Malacca Securities Sdn Bhd said the key focus would be on the local political scene, with the market eyeing the nomination of Prime Minister candidates.

Given the fluid political developments, investors should focus on apolitical sectors such as the telecommunications, consumer staples, and utilities sectors as well as stocks with high net cash with stable dividend payout, the stockbroking firm said.

"Traders should deploy a 'buy ahead of event and sell on news' strategy once the government is formed," it said in a note today.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said market sentiment was expected to remain cautious until the formation of a new government today.

He expected the index to trend in the 1,430-1,450 range today.

Among the heavyweights, Maybank rose four sen to RM8.57, Petronas Chemicals increased six sen to RM8.70, CIMB gained two sen to RM5.53, and IHH Healthcare bagged five sen to RM6.10.

Public Bank and Hong Leong Bank were flat at RM4.33 and RM20.62, respectively, but Tenaga gave up three sen for RM8.38.

Among the actives, Advance Synergy and Dagang Nexchange perked two sen each to 18 sen and 59 sen, respectively, Malayan United inched up half-a-sen to 10.5 sen, and Infoline improved four sen to 54 sen.

On the index board, the FBM Emas Index rose 11.74 points for 10,286, the FBM Emas Shariah Index climbed 4.52 points to 10,412.02, the FBMT 100 Index advanced 11.41 points to 10,016.41, and the FBM 70 earned 22.64 points to 12,189.59.

However, the FBM ACE decreased 20.59 points to 4,931.91.

Sector-wise, the Financial Services Index was 31.71 points higher at 16,239.49 and the Industrial Products and Services Index added 0.57 of a point to 179.49, while the Plantation Index slid 2.79 points to 6,836.38 and the Energy Index slipped 0.74 of a point to 722.63.

-- BERNAMA