KUALA LUMPUR: The FBM KLCI started Thursday, June 3 on a positive note in line with key regional markets that opened higher on the back of the overnight rebound on Wall Street where investors went bargain hunting for stocks that had been battered in recent days.

The Dow Jones industrial average gained 225.52 points, or 2.25%, to 10,249.54. The Standard & Poor's 500 Index rose 27.67 points, or 2.58%, to 1,098.38. The Nasdaq Composite Index climbed 58.74 points, or 2.64%, to 2,281.07.

Investors also were encouraged by data showing pending sales of previously owned homes increased to a six-month high in April, though analysts pointed to a rush to take advantage of the home buyer's tax credit before it expired, according to Reuters.

At Bursa Malaysia, the FBM KLCI jumped 11.03 points to 1,287.05 at 9.05am. Gainers led losers by 130 to 14, while 47 counters traded unchanged. Volume was 21.77 million shares valued at RM22.63 million.

Among the major gainers in early trade were KLK that added 14 sen to RM16.02, PPB up 12 sen to RM15.58, Tanjong up 10 sen to RM17.30 while Petronas Gas, Genting and Tan Chong gained nine sen each to RM9.97, RM6.88 and RM4.22, respectively.

Meanwhile, MISC, Tenaga and Axiata advanced eight sen each to RM8.40, RM8.37 and RM3.76, respectively.

OSK Investment Research in a note on Thursday said the market continued to consolidate the two-day sharp rebound in what was seen as an insignificant trading day from the technical point of view.

"We do not know how far the current rebound will be stretched if the index decides to continue adding more points from here.

"However, we are certain that the near-term market will remain bearish as long as it does not return back above the 1,307/1,308 point-level. The immediate technical outlook of the FBM KLCI is still firmly bearish at the moment," it said.

The research house said meanwhile, immediate resistance still lies at the 1,290-1,304 point-area, followed by the 1,307/1,308 point level.

"To the downside, we are still looking at Monday's gap area ranging from the 1,269 point-level to the 1,276 point-level as the immediate support. Next support is seen at 1,248 points," it said.