Bursa rebounds strongly after yesterday’s sell-off, FBM KLCI up over 14 points at open

KUALA LUMPUR, March 3 — Bursa Malaysia rebounded strongly at the opening bell Tuesday morning, reversing part of the previous session’s losses as bargain hunters stepped in to buy undervalued shares and supported market sentiment.

At 9.20 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) surged 14.20 points, or 0.83 per cent, to 1,714.41 from Monday’s close of 1,700.21, after initially opening at 1,704.23 — an increase of 4.02 points from the prior session’s finish.

Market breadth was broadly positive in the early session, with 419 gainers outnumbering 156 losers, while 306 counters remained unchanged. A total of 1,743 counters were untraded, and 22 were suspended, reflecting a selective but decisive return of buyers to the market. Turnover stood at 344.52 million shares valued at RM196.95 million in mid-morning trade.

Analysts attributed the early rebound to bargain hunting following the previous day’s market downward pressure, when risk sentiment was dampened by heightened Middle East geopolitical tensions and broader global market volatility — factors that had weighed heavily on equities across Asia. Investor preference shifted toward blue-chip banking stocks with attractive dividend yields, which provided some support against risk-off flows and helped stabilise domestic sentiment.

Monday’s sell-off had seen the FBM KLCI close lower amid global risk aversion linked to conflict in the Middle East, which had triggered flight-to-safety behaviour in markets and led regional benchmarks to slide. The retreat was exacerbated by concerns over rising energy prices, foreign capital outflows and broader equity market weakness in the face of geopolitical uncertainty — developments that saw Bursa Malaysia end the prior session with a near-1 per cent decline in its benchmark index.

However, the rebound Tuesday suggested that local market fundamentals and dividend-oriented sectors were attracting renewed interest from investors, even as global markets remained tentative. Traders noted that the banking sector, in particular, appeared to underpin market strength, supported by relatively attractive yield prospects and perceived defensive qualities in uncertain times.

Market participants are also watching external drivers such as foreign investment flows and currency moves, as well as domestic economic indicators that could influence sentiment in the coming sessions. Recent data have shown continued net selling by foreign investors in Asian markets, including Malaysia, as capital rotated toward safer assets amid growing geopolitical risk.

Technical analysts said that the rebound could also reflect short-term oversold conditions following the prior session’s broad retreat, providing short-term support for bourse indices and allowing opportunistic buyers to re-enter the market. If sustained, this could pave the way for a period of consolidation or further recovery, depending on regional risk appetite and global flows.

Investors remain cautious, however, as major global benchmarks continue to respond to macroeconomic and geopolitical developments, including higher oil prices and shifts in currency markets. Still, the early ascent in Bursa Malaysia on Tuesday suggests that local equities can find stability and attract demand even amid external headwinds, underlining the market’s resilience and the significance of domestic investor participation.