KUALA LUMPUR: Stocks on Bursa Malaysia rebounded on Tuesday after recent selling pushed prices down into oversold levels, even though inflation headwinds continue to put a lid on investor sentiment.
At 9.05am, the FBM KLCI was up 5.55 points to 1,446.79. The market sentiment was positive overall with 179 gainers compared with 93 decliners.
Trading volume was 108.48 million shares valued at RM46.43mil.
After Monday's session, which saw all 13 major sectors on the market ending in the red, Malacca Securities Research expects some short-term reprieve given the current low prices of equities.
"We believe stocks on the local bourse are oversold and could be due for bargain hunting opportunities, but overall market sentiment should remain challenging in the near term on the back of prospect of few more rounds of rate hikes; thus, the rebound might be short-lived," it said in a report.
It noted that oil prices are hovering in the US$115 a barrel range due to recession concerns, while crude palm oil was trading about RM5,000 a tonne as the market could be expecting normalising supply following Indonesia's strategy to speed up shipments and lifting its export ban.
Blue chips bouncing back from the previous session's sell-off included Public Bank up three sen to RM4.46, IHH rising five sen to RM6.38 and Tenaga Nasional gaining six sen to RM8.19.
Press Metal climbed six sen to Rm4.65 while Digi added six sen to RM3.23.
Meanwhile, technology counters also rose as Nasdaq futures showed some retracement from last week's sharp losses.
MPI gained 54 sen to RM29.06, Greatech rose nine sen to RM3.47 and Vitrox was up 16 sen to RM7.20.
SFP Tech continues to see gains after making a stellar debut in the previous session, that saw its share price double from the reference price. The stock was up one sen to 68 sen with 22.6 million shares traded, the second highest on the market.
The most active counter was MNC, unchanged at 1.5 sen with 52.9 million shares traded.
Other actives included DNex up one sen to 77.5 sen, Sapura Energy adding 0.5 sen to 4.5 sen and Cnergenz rising one sen to 61.5 sen.