PETALING JAYA: The FBM KLCI rebounded at mid-day amid the country’s political uncertainties following the collapse of the Pakatan Harapan government.

Despite opening 8.6 points lower at 1,481.46 points, from yesterday’s close of 1,490.06, the KLCI was trading 11.58 points or 0.78% higher at 1,501.64 points at 12.15pm.

A majority of the indices were in positive territory, as as bargain hunters took buying opportunities, and investors seemed to be temporarily soothed by the appointment of Tun Dr Mahathir Mohamad as interim prime minister.

However, in its market report, Rakuten Trade Research said it would be another “devastating” day for equity markets today as further selldowns are expected.

“Malaysia not only saw a sell-down on equities as bonds also suffered. As a result, the ringgit closed at a 2-year low of RM4.22/US$1. In view of this, we can expect more selling on the local bourse today with the FBM KLCI expected to test the 1,470 level thereafter the 1,450 mark,” it said.