KUALA LUMPUR, Dec 7 — Bursa Malaysia rebounded from last week’s losses to open higher this morning despite a downgrade on the country’s sovereign rating, thanks to the positive external environment, coupled with the return of bargain-hunting in the local market, dealers said.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) edged up 1.09 points to 1,622.94 after opening 2.22 points better at 1,624.07.

The barometer index was largely lifted by gains in Maybank with 1.313 points. The banking stock rose six sen to RM8.26 with 122,800 shares changing hands.

The overall market breadth was positive with gainers trouncing losers 423 to 206, while 374 counters were unchanged, 1,130 untraded and 31 others suspended.

Volume stood at 965.04 million units worth RM340.5 million.

Fitch Ratings had, last Friday, downgraded Malaysia’s long-term foreign-currency issuer default rating (IDR) to ‘BBB+’ from ‘A-’, with an improved outlook from negative to stable.

The downgrade marked the ratings agency’s first for the country since the 1997/98 Asian financial crisis.

Malacca Securities Sdn Bhd said tracking the gains on Wall Street on last Friday, coupled with the higher commodity prices, both crude oil and crude palm oil; further upsides are largely in the cards.

"The relaxation of the conditional movement control order measures also bodes well for economic growth.

"The lower liners are also expected to trend higher amid the liquidity driven market, though some toppish signs are returning to the fore,” the research firm said in a note today.

Meanwhile, Rakuten Trade Sdn Bhd said Wall Street charted new highs on Friday, driven by expectations of a stimulus package soon with the Dow Jones Industrial Average surging by another 249 points and remaining steadfast at above the 30,000 level.

"Therefore, we would expect regional markets to react positively today,” it said.

Locally, Rakuten said the FBM KLCI would rebound following an intermittent consolidation last Friday.

"As such, we may see the benchmark index to test another year high of 1,630 today,” it added.

The Brent crude is almost within the touching distance of US$50 per barrel and is currently hovering above the US$49 level. 

Among heavyweights, Top Glove and IHH Healthcare added one sen each to RM6.66 and RM5.46, respectively, and Hartalega rose six sen to RM14.56.

However, Public Bank lost eight sen to RM18.52 while Tenaga and Petronas Chemicals eased four sen each to RM10.90 and RM7.35, respectively.

Among the actives, Yong Tai bagged 8.5 sen to 45 sen, Sapura Energy and Nexgram inched uphalf-a-sen each to 13 sen and six sen, respectively, and Hiap Teck added one sen to 42 sen.

Inix Technologies, which recently ventured into the rubber glove industry after acquiring 51 per cent stake in L&S Gloves Sdn Bhd, earned five sen to 38 sen.

On the index board, the FBM Emas Index was 23.17 points higher at 11,763.89, the FBMT 100 Index bagged 21.18 points to 11,515.14, the FBM Emas Shariah Index improved 11.91 points to 13,519.08, and the FBM 70 soared 80.38 points to 15,329.93.

However, the FBM ACE trimmed 2.52 points to 10,622.45.

Meanwhile, the Industrial Products and Services Index added 0.01 of-a-point to 173.8, the Plantation Index went up 23.42 points to 7,372.82 and the Financial Services Index earned 41.42 points to 14,558.87. — Bernama