Bursa poised for rebound from oversold territory

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KUALA LUMPUR: There could be a rebound in the works for the domestic market following the previous week’s sharp downturn into oversold territory.

According to TA Securities Research, the technical momentum turned oversold after heavy losses on the blue chip index to test the 1,400 psychological support.

It said the upside will depend on how strong the buying momentum is with optimism growing following US politicians deciding to raise the government’s debt ceiling ahead of the deadline.

“The positive tone should spillover into the region and locally to provide a sentiment booster,” said the research firm in a market note.

At the opening bell, the benchmark FBM KLCI was up 2.49 points to 1,405.47.

However, there remained a mixed performance among the individual counters, wplantations stocks staying subdued amid a decline in the sector outlook.

Sime Darby Plantations was down six sen to RM4.16, IOI fell two sen to RM3.89 but Kuala Lumpur Kepong rose 26 sen to RM21.90.

There was some positive interest in technology counters following the jump on the Nasdaq last Friday.

MPI rose 46 sen to RM26.70, Pentamaster climbed nine sen to RM4.97and D&O added eight sen to RM3.98.

Among most active counters, Cloudpoint Technology rose 13.5 sen to 51.5 sen on the back of 81.65 million shares crossed following its debut on the ACE Market today.

Sapura Energy gained 0.5 sen to four sen and Vinvest was up 0.5 sen to 6.5 sen.

– The Star

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