Malaysian stocks oversold, technical rebound seen

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KUALA LUMPUR (Oct 14): The FBM KLCI may see a technical rebound today following substantial losses yesterday and last Friday. Analysts said the Malaysian stock market was oversold and its technical indicators were weak.

Last Friday, the KLCI fell 20.85 points or 1.14% to finish at 1,808.88 on global economic growth concerns. Yesterday, the index declined another 11.68 points to close at its intraday low of 1,797.2.

Today, BIMB Securities Sdn Bhd wrote in a note : "Readings from the indicators showed that the FBM KLCI is bearish but is oversold for the short term, and hence, a technical rebound might be expected ahead."

Across Asia, Bloomberg reported that Asian stocks fell, with the regional benchmark index heading for a six-month low, extending a rout in global equities after the Standard & Poor’s 500 Index capped its biggest three-day loss since 2011.

The MSCI Asia Pacific Index fell 0.6 percent to 135.60 as of 9:04 a.m. in Tokyo before markets in China and Hong Kong open. The gauge dropped 8.8 percent from its year high in July through yesterday as the Federal Reserve contemplates when to raise interest rates and a faltering recovery in Europe sparked concern global economic growth will slow.