KUALA LUMPUR (July 12): The FBM KLCI erased losses at the 11th hour to close 2.21 points or 0.1% higher on index-linked Axiata Group Bhd's share gains.

At 5pm, the KLCI ended at its intraday high at 1,757.24 points after falling to its intraday low at 1,751.59 points. Axiata rose 23 sen to close at RM4.87 to become Bursa Malaysia's third-largest gainer.

Axiata shares jumped after the mobile telecommunication network provider said it was "confident that the Government of Nepal will not discriminate and contradict the aegis of the Bilateral Investment Treaty by blocking Axiata from repatriating its dividends rightfully due to the group as foreign investor in the country."

Across Bursa Malaysia, 1.79 billion shares valued at RM1.77 billion were traded. Gainers beat decliners at 449 against 332 respectively.

Despite the KLCI's gain, Jupiter Securities Sdn Bhd chief market strategist Benny Lee said the Malaysian share market sentiment was still bearish as crude oil traded below US$50 a barrel and as investors evaluated the ringgit amid foreign selling of Malaysian assets.

Lee said "Bursa Malaysia's trading volume has not recovered to levels seen before the Hari Raya holidays, as average trading volume fell to RM1.8 billion compared with RM2 billion two weeks ago."

Hong Leong Investment Bank Bhd analyst Loui Low Ley Yee offers a technical viewpoint. Low said the KLCI was expected to be in consolidation mode in the near term, as the index was trending below its key 10-day to 50-day moving averages coupled with other negative indicators.

“Nevertheless, the Stochastics oscillator is getting oversold, suggesting that the key index may be due for a technical rebound towards immediate targets at 1,763–1,771 zones,” he wrote in a note.

Globally, investors will closely follow US Federal Reserve Chair Janet Yellen's comments for clues on the nation's monetary policy.

Reuters reported that Yellen will give her semi-annual monetary policy testimony before Congress later on Wednesday and on Thursday, and investors will be parsing it for clues on when the Fed will start reducing its massive balance sheet.

In Malaysia tomorrow, Bank Negara Malaysia will announce its monetary policy. In May, Bank Negara maintained the overnight policy rate at 3%.