Bursa Malaysia opened higher on Wednesday as bargain hunting emerged after the recent selloff, although elevated US bond yields and lingering geopolitical uncertainties continued to keep investors cautious, The Star reported.
The FBM KLCI rose 5.20 points or 0.33% to 1,649.16 at 9.26am after opening 2.53 points higher at 1,646.49.
Tenaga Nasional led the early gains, rising 18 sen to RM12.90, while Allianz Malaysia added 14 sen to RM21. Hengyuan warrants gained 13 sen to 28 sen, while Gamuda and Jati Tinggi Group advanced 10 sen and nine sen to RM5.08 and RM1.33 respectively.
On the losing side, Eurospan fell 25 sen to RM2.99, while Hengyuan dropped 18 sen to RM4.16. PETRONAS Dagangan shed 14 sen to RM19.18 and Aeon Credit declined 13 sen to RM5.06.
The rebound followed a weaker session on Wall Street, where the Dow Jones Industrial Average fell 0.26%, the S&P 500 lost 0.17% and the Nasdaq Composite slipped 0.08% on Tuesday as elevated bond yields weighed on sentiment.
Berjaya Research said the near-term outlook for the FBM KLCI remained tilted to the downside as investors continued to assess geopolitical risks and a lack of fresh domestic catalysts.
“The near-term outlook for the FBM KLCI remains tilted to the downside, with investors likely to stay cautious amid lingering geopolitical uncertainties and a lack of fresh domestic catalysts,” it said.
The research house said investors would focus on US job openings and consumer confidence data due later on Wednesday for clues on the Federal Reserve’s policy path and global risk appetite.
It expects the local market could stage a technical rebound, although gains are likely to remain measured, with resistance at 1,665 to 1,683 points and support at 1,640 followed by 1,630.
“The broader market may see mild bargain hunting following the recent selloff, particularly in oversold lower liners, as oil prices eased after Saudi Arabia restored about half the capacity of its East-West pipeline following drone attacks,” it said.
However, caution could persist ahead of the release of the FOMC minutes, while the 30-year US Treasury yield, which has climbed to its highest level since 2002, could continue to weigh on risk appetite.
Meanwhile, Malacca Securities expects continued interest in data centre infrastructure and regional expansion plays as Malaysia strengthens its digital infrastructure ecosystem.
Powerwell could attract attention following its strategic collaboration with Socomec to develop integrated power train units for large data centres and hyperscale facilities.
UMS Integration may also be in focus after proposing a RM450 million private placement, with RM332 million earmarked for its Penang expansion and RM111 million for projects in Vietnam and Singapore.
Kelington Group remains on the radar following its RM1.8 billion contract win on Sept 14, which lifted its order book above RM3.6 billion and extended earnings visibility through 2029.
