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Malaysian stocks are set to rebound next week as investors continue to bargain-hunt for oversold, undervalued shares after the market dipped to a four-year low earlier in the week, dealers said.
"Based on the technical charts, the positive momentum may continue well into next week," said Kaladher Govindan, research head at local brokerage TA Securities. On Tuesday the market sank to its lowest in four years, hitting a low of 801.27, as regional markets tumbled following deepening fears over the health of the global economy.
The market recovered slightly and on Thursday staged a strong rebound, fuelled by sharp rallies in the region after the US interest rate cut triggered similar cuts in China, Hong Kong and Taiwan, analysts said.

Copyright Agence France-Presse, 2008

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