KUALA LUMPUR: Bursa Malaysia bounced back as bargain hunters stepped in after a heavy sell-off on Monday.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed at 1,574.39, rose 37.91 points or 2.47 per cent from Monday's close at 1,36.48.
On the broader market, gainers led losers 1,083 to 309, while 348 counters unchanged, 665 untraded, and seven suspended.
Turnover decreased to 6.39 billion units worth RM5.31 billion from Monday's 9.26 billion units worth RM7.97 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said major regional indices experienced a similar recovery as well, while European stocks also recouped some losses in early trading, although they did not see a dramatic rebound.
He added that the US futures markets showed signs of recovery, with positive trends in Nasdaq, S&P 500, and the Dow Jones Industrial Average (DJIA) futures. "For the local bourse, we reckon bargain may continue as the benchmark index remains in oversold position while at the same time, the fundamental of Malaysian economy remains solid with improving corporate earnings and continuous foreign direct investment (FDI)."
"In the short term, the FBM KLCI is showing signs of recovery after a significant sell-off," he said.According to Thong, technical analysis indicates strong buying interest, and the index may attempt to retest resistance levels at the 20-day and 50-day exponential moving averages (EMAs).
He said investors are advised to watch for key support and resistance levels and monitor technical indicators to better grasp the trend direction.
"For the FBM KLCI, support is anticipated at 1,550, followed by 1,530, and resistance at 1,600, followed by 1,620," he added.