KUALA LUMPUR (Aug 8): The FBM KLCI rebounded and was slightly higher at midday, thanks to gains in telecommunications and industrial stocks.

Among the top gainers were Axiata Group Bhd (KL:AXIATA), Maxis Bhd (KL:MAXIS), CelcomDigi Bhd (KL:CDB), Sunway Bhd (KL:SUNWAY), Sime Darby Bhd (KL:SIME), Press Metal Aluminium Holdings Bhd (KL:PMETAL), Petronas Dagangan Bhd (KL:PETDAG), Kuala Lumpur Kepong Bhd (KL:KLK) and YTL Corp Bhd (KL:YTL).

The benchmark index opened lower on Thursday, in tandem with regional bourses as global uncertainties persisted, including the unwinding of the yen carry trade, escalating Middle East conflict, and US downturn fears. 

At the opening bell, the key index slipped 0.37% or 5.91 points to 1,585.96 from Wednesday's close of 1,591.87, before retracing to settle at 1,592.03 at noon break.

Elsewhere, Japan's Topix Index and benchmarks in Australia and South Korea opened lower, continuing last week's volatile trend as investors assess central bank signals on interest rates.

The Topix Index fell 1.3% while Australia’s S&P/ASX 200 fell 0.2%.

US futures declined in early Asian trade on Thursday, following drops in the S&P 500 and Nasdaq 100 on Wednesday. The yen rose after a 1.6% fall on Wednesday.

Hong Leong Investment Bank noted that the FBM KLCI, after rallying 62 points or 4.1% to 1,591 — from a four-month low of 1,529 — on Wednesday, may face significant resistance at 1,593-1,615 due to earnings uncertainty and potential margin calls. Major supports are at 1,529-1,584.

Meanwhile, Rakuten in a separate note said it was "surprised" by the FBM KLCI's strong recovery, with the index seen as attempting to break the 1,600 level.

"Though the 1,600 is now deemed as a psychological resistance, we reckon it is crucial that this level is broken soonest possible in order to maintain the recent upward trajectory. 

"Nonetheless, as sentiment is still in a cautious mode, we expect the index to possibly hover within the 1,590-1,600 range today," it added.

On Wednesday, the benchmark index gained 1.10% or 17.48 points to close at 1,591.87. Most sectors were positive with energy (+3.1%), utilities (+3.1%) and construction (+30%) leading gains, while plantation (-0.4%) was the only loser. 

Market breadth was positive with 1,061 gainers against 270 losers, while 376 counters were unchanged. Over five billion shares were traded valued at RM4.02 billion.