KUALA LUMPUR: Bursa Malaysia opened higher today, tracking the gains on Wall Street.
The benchmark FBM KLCI added 8.29 points to 1,394.56 at 9.06 am. The index opened 6.65 points higher at 1,392.92 earlier.
Overnight, the Dow Jones Industrial Average gained 1.86%, to close at 30,185.82. The S&P 500 jumped 2.65% to 3,677.95 while the Nasdaq Composite surged 3.43% to 10,675.80.
Malacca Securities reckoned that the rebound on Wall Street may see buying interest spilling over on beaten-down or oversold stocks over the near term.
“Still, the weakening trading liquidity and the persistent selling from foreign funds (net sell RM870.1mil month-to-date) will keep bigger strides of gains at bay,” it said.
The research house said the beaten-down healthcare sector appeared to look attractive and may extend its revival trend, backed by the prospects of an improved outlook.
“The technology sector may stage a rebound to mirror the gains on Nasdaq overnight, while the stability in crude oil prices may lend some support to the energy sector,” it added.
Meanwhile, TA Securities said while stocks may extend a rise on improving risk sentiment following recovery in the overnight US and UK markets, weak buying momentum and cautious outlook on China and the global economy should cap upside potential.
“Key index chart supports remains at 1,370 and 1,350, while 1,323, the 23.6%FR level, will act as a crucial support cushion.
“Immediate overhead resistance stays at the recent rebound high of 1,428, followed by 1,450, then 1,480 and 1,500, next is 1,512, with significant upside hurdle from the August high near 1,528,” it said.
On Bursa Malaysia, PETRONAS Dagangan rose 30 sen to RM20.30, United Plantations gained 20 sen to RM14.08, Kuala Lumpur Kepong added 18 sen to RM20.38 and Axiata climbed 13 sen to RM2.54.
Among the losers, Heinken lost 14 sen to RM23.36, Hong Leong Bank fell 12 sen to RM20.48, F&N declined six sen to RM20.50 and CB Industrial Product eased five sen to RM1.08.