KUALA LUMPUR (March 10): The FBM KLCI recovered from its 4% tumble on Monday to rise 1.04% at the midday break today on bargain-hunting activities, but broader market sentiment stayed fragile given lingering uncertainties over the impact from the coronavirus threat.

At 12.30pm, the FBM KLCI rose 15.07 points to 1,439.23.

Losers, however, led gainers by 474 to 216, while 504 counters traded unchanged. Volume was 2.43 billion shares valued at RM1.56 billion.

The gainers included Public Bank Bhd, Nestle (M) Bhd, MISC Bhd, Sime Darby Plantation Bhd, British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Mi Technovation Bhd, Greatech Technology Bhd and Petronas Chemicals Group Bhd.

The actives included Sapura Energy Bhd, Bumi Armada Bhd, Dayang Enterprise Holdings Bhd, Datasonic Group Bhd, Velesto Energy Bhd, Hibiscus Petroleum Bhd, Perdana Petroleum Bhd and Alam Maritim Resources Bhd.

The decliners included Petronas Dagangan Bhd, Malaysian Pacific Industries Bhd, Carlsberg Brewery Malaysia Bhd, Fraser & Neave Holdings Bhd, Aeon Credit Service (M) Bhd, Dayang, Kuala Lumpur Kepong Bhd and MBM Resources Bhd.

Reuters said Asian shares bounced and bond yields rose from historic lows on Tuesday as speculation of coordinated stimulus from global central banks and governments calmed panic selling.

Yields on benchmark US 10-year Treasury debt more than doubled to 0.7% and oil prices rallied over 7%, offering hope that markets had found a floor, even just fleetingly, it said.

Meanwhile, oil prices bounced around 6% on Tuesday, but analysts saw little chance of a major recovery from the biggest daily rout in nearly 30 years after top producers Saudi Arabia and Russia launched a price war.

Affin Hwang Capital Research said the FBM KLCI plunged 58.94 points or 4% to close at 1,424.16 on Monday.

It said the index posted heavy losses, pushing lower, way past below the recent low at 1,456.08 in yesterday’s session.

“This tells us that selling pressure is strong, which is also supported by the formation of the huge bearish candlestick.

“Downward momentum remains firm, as indicated by key technical indicators trading in bearish territories, showing weakness in price.

“Consistent plunge in the global equity markets and crude oil prices [is] likely to drag global market into an intermediate term downtrend which could lead into a major bear market cycle. Hence, anticipate local stocks to correct in tandem with the global market in the near term,” it said.