Malaysian stock market rebounds after 10 per cent plunge

On Monday, trading was temporarily suspended for an hour after the Kuala Lumpur Composite Index fell more than 10 per cent, triggering a shutdown in a circuit-breaker system implemented to protect the market.

Analysts had attributed the plunge to investor uncertainty after the election results, which saw Prime Minister Abdullah Ahmad Badawi's ruling National Front coalition return to power but being denied a two-thirds majority for the first time since 1969.

Traders predicted that the market would continue on a downward trend throughout the week, with some cautious investors returning.

"We're experiencing a technical rebound after yesterday's nightmare," said a broker at a local investment institution.

"Local funds are also supporting the market, giving rise to the rebound," he said.

Following the election results, Abdullah has dismissed talk that he was under pressure to resign and has said he still enjoys the support of the people and party leaders to serve as premier.//DPA - March 11, 2008