Bursa ends higher on bargain hunting

Bursa Malaysia's key index, the FTSE Bursa Malaysia KLCI, closed higher on Wednesday after slipping recently due to oversold conditions driving bargain hunters into the market. The benchmark index increased by 7.21 points, or 0.43%, to 1,651.17 from the previous day's close of 1,643.96. Throughout the trading session, the index fluctuated between 1,645.03 and 1,657.41.

Market breadth was negative, with more decliners (703) than gainers (413), while 572 counters remained unchanged. Turnover improved to 3.63 billion units valued at RM3.62 billion, up from Tuesday's 3.31 billion units worth RM2.95 billion. Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, stated that the local market's recovery remains tentative as investors await the August US Personal Consumption Expenditures (PCE) price index, a crucial inflation indicator that could determine the potential further decline in bond yields.

Despite geopolitical tensions in the Middle East and elevated US 10-year Treasury yields, Thong believed the recent market correction brought certain blue-chip valuations to more attractive levels, potentially encouraging further bargain hunting. He anticipated the FBM KLCI to range between 1,640-1,670 for the rest of the week.