KUALA LUMPUR (July 31): The FBM KLCI rose 4.85 points or 0.3% after analysts said oversold Malaysian shares could see a technical rebound. 
 
At 9.19am, the KLCI was traded at 1,704.77 as index components emerged among Bursa Malaysia top gainers. These included Public Bank Bhd and Malayan Banking Bhd.

The sustainability of the KLCI's gains will, however, be closely watched against global and domestic factors. Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang said concerns including China market dynamics and Malaysian political uncertainties could curb the KLCI's gains.

Foo wrote in a note today that there were "no fresh catalysts" to move the market away from the current consolidation.

Reuters reported that Asian shares inched higher on Friday but were on track for a weekly loss, while the dollar edged away from highs scaled after U.S. GDP data reinforced expectations that the Federal Reserve is on track to raise interest rates this year.

Investors kept a wary eye on China, where stocks dropped on Thursday after state media reported that banks were investigating their equities exposure in the wake of the recent dramatic rout there.

Across Asian share markets, Japan's Nikkei added 0.01% while South Korea's Kospi fell 0.5%.

Bursa Malaysia saw some 164 million shares worth RM72 million changed hands. There were 167 gainers versus 122 decliners.

The top gainer was KAF-Seagroatt & Campbell Bhd while Pos Malaysia Bhd led decliners. The most-active stock was The Media Shoppe Bhd.

In currency markets, the ringgit strengthened to 3.8168 against the US dollar. Compared to the Singapore dollar, the ringgit appreciated to 2.7776.

Malaysian shares and the ringgit are expected to take the cue from US interest rate hike sentiment, which have resulted in a stronger US dollar and weaker crude oil prices.

Anticipation of US rate hikes this year does not bode well for emerging Asian markets like Malaysia as investors focus on US dollar-denominated assets.