KUALA LUMPUR: The FBM KLCI is expected to consolidate above the 1,530 support level following Bank Negara's decision to keep the status quo on the overnight policy rate, said Apex Securities Research.
The research firm said the lower liners, which have been on the rebound, could extend their gains in small increments due to the improved market sentiment.
"Traders are taking this opportunity to nibble onto beaten down stocks," it said in a note.
By sector, Apex expects the technology sector to stage a recovery following the positive developments on the Nasdaq while rising gold and CPO prices might create some trading opportunities within the gold-related and plantation stocks.
Wall Street rebounded strongly overnight as investors were relieved by US Federal Reserve Jerome Powell's affirmation that interest rate cuts were likely to begin this year if inflation remained on a downward trajectory.
The S&P500 rallied 1% to a fresh record high of 5,157 while the Nasdaq climbed 1.5% to 16,273, less than two points off its own record set last week. The Dow Jones rose 0.3% to 38,791.
At 9am, the FBM KLCI was up 0.69 points to 1,536.92, with investors staying cautious below the 21-day simple moving average.
Banks were among the early gainers including CIMB rising six sen to RM6.58, Hong Leong Bank adding four sen to RM19.50 and AMMB rising three sen to RM3.98.
PETRONAS Dagangan lost 26 sen to RM21.96 while Press Metal
shed three sen to Rm4.51.
Top actives on the broader market included Harvest Miracle down 0.5 sen to 11 sen, TWL unchanged at 3.5 sen and Velesto flat at 28 sen.
