FBM KLCI bounces back after minor correction

KUALA LUMPUR: Traders made a mildly positive start on Bursa Malaysia amid signs the local bourse could be taking on a sideways trading pattern as the Lunar New Year holidays approached.

Apex Research said the profit-taking on the FBM KLCI is likely to persist as sentiment remains fragile amid heightened geopolitical and policy uncertainties.

The research firm said domestically, attention will be on Malaysia’s unemployment data for cues on the economic outlook, while externally, focus will shift to key US releases, including non-farm payrolls and the unemployment rate, for further clarity on growth and policy direction. 

Nevertheless, it added that continued foreign inflows and rotation into Asia should help limit downside, supporting large-cap defensives and earnings-visible names, particularly financials, utilities and selective technology stocks.

Rakuten Trade, meanwhile, said the previous day's decline was owing to a minor correction.

"We view this minor correction as healthy and expect the index to stage a rebound anytime soon," it said in its outlook.

At 9am, the FBM KLCI rose 3.69 points to 1,751.23, as blue chips rebounded from the previous day's sell-off.

Gainers included MISC up eight sen to RM8.18, 99 Speed Mart Retail up five sen to RM 4.01 and PETRONAS Gas rising 16 sen to RM18.50.

On the actives list, MMAG was flat at 4.5 sen, Velesto unchanged at 31 sen and Borneo Oil unmoved at one sen.