KUALA LUMPUR (Jan 31): The FBM KLCI rebounded on Friday as bargain hunting ensued, after the benchmark index hit a five-month low on Chinese New Year's Eve driven by massive selldown in artificial intelligence (AI)-related counters. 

At Friday's noon market break, the composite index was up 4.35 points or 0.28% at 1,557.04 points. The rebound was led by Mr DIY Group (M) Bhd (KL:MRDIY), Sime Darby Bhd (KL:SIME), and 99 Speed Mart Retail Holdings Bhd (KL:99SMART). 

YTL Power International Bhd (KL:YTLPOWR) and its parent YTL Corp Bhd (KL:YTL), which were the two counters most badly hit by the selldown prior to the holiday break, also rebounded on the first trading day of the Year of the Snake. 

YTL Power's share price rose as much as 13 sen or 4.18% to reach an intraday high of RM3.24, before paring gains to RM3.12 as of 12.30pm, while YTL Corp gained three sen or 1.58% to RM1.93, giving it a market capitalisation of RM21.43 billion.  

The overall market breadth was positive, with gainers outpacing losers 422 to 255, while 404 counters were unchanged and 1,262 untraded. 

"We expect bargain hunting to emerge on the local bourse after the two-day festive break, as investors digest recent developments alongside the positive overnight performance on Wall Street," Apex Securities Bhd said in a note early on Friday.  

The firm was referring to the relatively strong earnings reported by US tech giants, which lifted overall investors sentiment. All three major US indices closed in the green on Thursday, with the Dow Jones Industrial Average climbing 168.61 points, or 0.38%, to close at 44,882.13. The S&P 500 rose 0.53% to 6,071.17, while the Nasdaq Composite gained 0.25% to end at 19,681.75.

Regional markets also rebounded, although markets in mainland China, Hong Kong and Taiwan were still closed for the Chinese New Year. Singapore's Straits Times Index gained 1.74%, Indonesia's Jakarta Stock Exchange Composite Index went up by 1.20%, while Japan's Nikkei 225 rose 0.22%. However, South Korea's Kospi dropped 1.07%. 

"However, we do not anticipate a strong rebound or significant movements, given that it is the last trading day of the week, and many investors remain reeling from the festive break," it added. 

Apex Securities pointed to the utilities, construction, and technology sectors to potentially experience a mild rebound, following the sharp sell-off before the Chinese New Year break. 

Evidently, the Bursa Malaysia Utilities Index was up 1.19%, the Bursa Malaysia Construction Index gained 0.82%, and the Bursa Malaysia Technology Index rose 0.65% as at Friday's noon market break. 

"Meanwhile, the plantation sector could see increased trading activity, following reports of a flood incident in Sarawak, which may impact supply dynamics and crude palm oil prices," it cautioned.