FBM KLCI components rebound after two-day knee-jerk reaction

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KUALA LUMPUR (Oct 12): More than half of FBM KLCI components have rebounded in this morning's trading session after what seemed like a knee-jerk reaction to US stocks tumbling over the past two days.

Leading the rebound, top stocks include Tenaga Nasional Bhd, which rose 2.8%, followed by CIMB Group Holdings Bhd, up 2.47%, and DiGi.Com Bhd, up 2.05%.

Malayan Banking Bhd rose 1.83% while Hong Leong Financial Group Bhd rose 1.5%.

At noon close, the FBM KLCI rose 0.78% to 1,721.96, while the small cap index rose slightly by 0.12%.

The financial service counters are also doing better, up 1.06%, followed by the construction sector, which rose 0.76%. Those currently in the red, however, include telecommunications, which fell 0.5%, and property, down 0.37%.

Across Asia today, Japan's Nikkei 225 fell 0.28%, while South Korea's Kospi rose 1.37%. In China, Hong Kong's Hang Seng rose 1.16% while the Shanghai Stock Exchange Composite was down by 0.12%.

Local equity fund managers and analysts opine that a market correction, especially in the US, is long overdue.

Overnight in the US, the Wall Street continued its correction for the second day. The Dow Jones Industrial Average fell 2.13%, while S&P 500 declined 2.06% and the Nasdaq Composite declined 1.25%.