KUALA LUMPUR (March 13): The FBM KLCI staged a strong rebound on Thursday, snapping its five-day losing streak that had erased nearly 80 points from the index. The benchmark index surged by 25.20 points, or 1.7%, to close above the key 1,500 mark at 1,510.03 on Thursday, marking its largest gain since Aug 6.

Market watchers attributed the rally to bargain-hunting activities, with investors seizing opportunities in the deeply oversold market. Positive sentiment was further bolstered by the previous day’s strong performance in the US market, driven by better-than-expected inflation data.

Bursa Malaysia emerged as a rare standout, with most other Asian markets showing only modest gains or ending in negative territory. However, the ringgit experienced a slight decline.

Positive market sentiment dominated the local bourse, as 728 gainers surpassed 268 decliners, with a trading volume of 3.25 billion shares worth RM2.9 billion.

All sector indices turned positive on Thursday, led by technology (+3.70%), energy (+3.11%), and construction (+3.07%).

Top gainers among KLCI constituents included Sunway Bhd (KL:SUNWAY), which rose 5.8% to RM4.41; Axiata Group Bhd (KL:AXIATA), up 4.5% to RM1.85; and Petronas Dagangan Bhd (KL:PETDAG), which gained 3.8% to RM17.02.

Notable gainers in the technology sector included Frontken Corporation Bhd (KL:FRONTKN), which rose 11.1% to RM3.60; UWC Bhd (KL:UWC), up 9.4% to RM2.10; and Pentamaster Corporation Bhd (KL:PENTA), up 6.2% to RM2.74.

In the energy sector, Dayang Enterprise Holdings Bhd (KL:DAYANG) jumped 14.1% to RM1.70, Hibiscus Petroleum Bhd (KL:HIBISCS) gained 13.1% to RM1.55, and Sapura Energy Bhd (KL:SAPNRG) rose 12.5% to 4.5 sen.

Construction sector gainers included IJM Corporation Bhd (KL:IJM), up 4.6% to RM2.03; Sunway Construction Group Bhd (KL:SUNCON), up 3.8% to RM4.33; and Gamuda Bhd (KL:GAMUDA), up 3.5% to RM3.90.

While the FBM KLCI's recovery highlights its resilience, analysts remain cautious, noting that the broader market outlook continues to present persistent challenges, urging investors to stay vigilant.

The local stock market and its regional peers have been grappling with the uncertainties surrounding US trade policies over the last month that could pose economic damage to the US and its major trading partners.

"On the global front, persistent concerns over tariffs and recession fears continue to dominate market sentiment," Maybank IB said in its note to clients on Thursday.