KUALA LUMPUR: Bursa Malaysia's benchmark index rebounded on Friday, buoyed by bargain hunting after hitting a five-month low on Chinese New Year's holidays due to massive selldown in AI-linked stocks.
The FTSE Bursa Malaysia KLCI (FBM KLCI) closed 4.23 points, or 0.27 per cent at 1,556.92 from Tuesday's close of 1,552.69.
Bursa Malaysia and its subsidiaries were closed on Wednesday and Thursday in conjunction with the holidays.
At the opening bell, the benchmark index was 1.09 points higher at 1,553.78 and moved between 1,545.84 and 1,557.53 throughout the trading session.
On the broader market, gainers led losers 508 to 315, while 445 counters were unchanged and 1,008 untraded. Turnover reached 1.47 billion shares valued at RM1.92 billion.
The rebound comes after a challenging session on Tuesday, when the index hit its lowest level since September 2024 as investors offloaded shares in technology and AI-related sectors following DeepSeek's breakthrough in AI using lower-powered AI chips.
DeepSeek, a one-year-old startup, recently unveiled R1, an AI model with ChatGPT-like capabilities that rivals offerings from OpenAI, Google and Meta, but at a fraction of the cost.
The company disclosed that it spent only US$5.6 million on computing power for its base model, a stark contrast to the hundreds of millions or billions of dollars typically invested by major US tech giants.
The announcement sent shockwaves through the tech industry, sparking discussions about the future of cost-efficient AI innovation.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the FBM KLCI closed higher today, bolstered by improved sentiment across regional and global markets.
He said plantation-related stocks within the index contributed to the gains, supported by a stronger ringgit and rising demand in the regional market.
"Regionally, Asian indices majority trade higher following gains on Wall Street driven by Tesla, IBM and Meta Platforms after strong profit reports. Markets in Hong Kong and Shanghai remain closed for the Chinese new year holidays," he added.