KUALA LUMPUR (Feb 7): The FBM KLCI rose over 27 points in what analysts refer to as a relief rebound as investors bargain hunted for beaten-down Malaysian shares after the global equity market sell-down. Malaysian markets may have also taken cue today from US stocks' overnight rise.

At Bursa Malaysia today, the KLCI climbed 27.81 points to 1,840.26 points at 10am. Earlier, the KLCI opened 15.09 points or 0.8% higher at 1,827.54 points at 9am.

Overnight, Reuters reported that US stocks posted sharp gains in another wild trading session on Tuesday, as indexes rebounded from the biggest one-day drops for the S&P 500 and the Dow in more than six years that stalled the market's record run. The Dow Jones Industrial Average rose 567.02 points or 2.33% to 24,912.77, the S&P 500 gained 46.2 points or 1.74% to 2,695.14 and the Nasdaq Composite added 148.36 points or 2.13% to 7,115.88.

In Malaysia on Tuesday, the KLCI fell 40.62 points to close at 1,812.45 points after reaching an intraday high and low at 1,820.37 and 1,795.85 points respectively. Malaysian shares fell with global equities amid higher US bond yield and US interest rate hike concerns.

Today, TA Securities Holdings Bhd wrote in a note: "A relief rebound should lift the local market sharply off recent lows following the overnight rally on Wall Street, but concerns over rising US bond yields and interest rates should remain to check gains."

Public Investment Bank Bhd wrote in a note today the FBM KLCI's valuation is attractive versus regional stock markets in price-to-earnings terms.

"The FBM KLCI is still cheap from a regional standpoint, at 16.4x 1-year forward price-to-earnings ratio compared to Thailand's 18.6x, our most direct comparable, economy-wise. Indonesia and Philippines are currently trading in excess of 23x earnings. Earnings growth will accelerate from 3.6% in 2017 to 6.3% in 2018, underpinned by the country's stronger economic performances cascading into corporate and consumer Malaysia.

"We remain positive on the local bourse for 2018, perhaps not overly-enthusiastic though this has already been communicated before. Fundamentals remain unchanged this month and last. What is changing is the perception of heightened inflation and interest rate hike risks in the US which has deflated investment sentiment," it said.