Bursa maintains rebound as bargain-hunting continues


KUALA LUMPUR: There could be more near-term bargain-hunting activities on Bursa Malaysia following the rebound in the previous session and as investors pick up oversold counters.

According to Malacca Securities Research, the calmer market conditions present an opportunity for rotational play among the lower liners, although it cautions that the pace of recovery may be limited.

"Investors may keep a close watch on the US inflation rate that will be released tomorrow night and may provide further clues over the direction of interest rate in the US," it said in a note.

Meanwhile, TA Securities Research is maintaining a more bearish outlook on the domestic market as it notes the ongoing external headwinds.

"The local market is likely to drift sideways in the immediate term, with the cautious market undertone amid slowing regional growth momentum restricting firmer investor commitments.

"On the index, immediate overhead resistance remains at 1,400, with 1,420, followed by the 200-day moving average at 1,439, acting as stronger resistance levels. Crucial supports are at 1,369 and 1,350," it said in its market commentary.

At the start of Tuesday trading, Malaysia's benchmark FBM KLCI was up 3.03 points to 1,386.09 but remained capped by the short-term 21-day simple moving average.

Hong Leong Bank was a notable outperformer, rising 20 sen to RM19.02 while other banks staysed little changed.

Some early gainers on the market included Heineken up 28 sen to RM25.80, Carlsberg rising 18 sen to RM20.34 and KLCC climbing 14 sen to RM6.97.

EP Manufacturing leapt 11.5 sen to 82.5 sen on the back of news it had secured condition approval from the authorities for a licence to manufacture energy-efficient and electric vehicles.

Meanwhile, the leading actives included Revenue up 0.5 sen to 26 sen, Tanco down 0.5 sen to 51.5 sen and Jade Marvel rising one sen to 23 sen.

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