KUALA LUMPUR: Bursa Malaysia opened to a relief rebound on Wednesday following a bounce on Wall Street as traders bet the Federal Reserve will put the brakes on interest rate hikes following the recent fallout in the financial sector.
Also helping the case for slowing rate hikes was the release the US February inflation data, which was largely in-line with economists forecasts.
At the start of trading, Malaysia's bellwether index gapped up 6.27 points to 1,400.1, a welcome respite after five straight days of losses as investors reclaimed the psychological trading level of 1,400 points.
However, TA Securities Research said in a note that the jittery sentiment is expected to prevail in the near-term pending the successful containment of the fallout from the failed startup banks by US financial authorities.
"On the index, last October's low of 1,372 will act as crucial support preventing further downside, with stronger chart supports seen at 1,350, 1,320 and 1,300 in the event of a breakdown.
"Overhead resistance is revised lower to 1,450, followed by the 200-day moving average at 1,468, with 1,500, then 1,512, and subsequently last August high near 1,528 as stronger resistance levels," it said.
On a sectoral basis, Malacca Securities Research said sectors that will benefit from the rebound include technology, financial services and industrial products and services.
"On the other hand, the energy stocks could still be under pressure due to weaker crude oil prices below US$80," it added.
Meanwhile, Oppstar made its debut on Bursa Malaysia with a RM1.42 jump to RM2.05.
There was also strong buying interest in Vitrox up 18 sen to RM7.58, Greatec gaining 13 sen to RM4.80 and Chin Hin rising 11 sen to RM3.90.
MI Technovation rose eight sen to RM1.86, United Plantation gained 10 sen to RM16.18 and CFM added eight sen to RM1.23.
