KUALA LUMPUR: Bursa Malaysia saw a slight technical rebound yesterday, with the benchmark index gaining almost 28 points to 1,765.52, on news of improved crude oil prices.
Brent crude oil hit a fresh five-year low on Tuesday before rebounding to near US$67 (RM233) a barrel, according to Reuters.
RHB Research executive director and research head Lim Chee Sing said the FTSE Bursa Malaysia KLCI will still be impacted by the volatility of the commodity price.
“Oil prices rebounded after a sharp plunge and the market reacted, leading to the technical rebound.
“However, the market is not expected to continue to trend higher as people are not comfortable and not convinced that oil prices will stabilise and rebound soon,” he told Business Times.
The volatility of the ringgit has also been a strong influence in the local bourse rebound, added Lim.
The ringgit closed firmer against the US dollar yesterday at 3.4770/4800 from 3.4820/4840 on Tuesday.