Ringgit rebounded 0.29% to the US dollar, spurring a rally in the KLCI
KUALA LUMPUR: The ringgit rebounded against the US dollar on Thursday as improving sentiment galvanised the stock market rally and helped power the FBM KLCI more than 12 points higher at the close.
At 5pm, the KLCI was up 12.35 points or 0.75% to 1,659.82. Turnover surged to recent month high of 2.51 billion shares valued at RM1.85bil. The broader market was firm with advancers beating decliners two to one or 601 gainers to 291 losers and 313 counters unchanged.
The ringgit joined key Asian currencies to rally against the US dollar. The local unit rose 0.29% to 4.4845 from the previous close of 4.4975. The one-week non-deliverable forward (NDF) was quoted between 4.4712 and 4.4810 while the one-month NDF was at 4.4733-4.4850.
The dollar fell by the most in two months as traders digested minutes from the Federal Reserve’s December meeting and the yuan surged to its biggest two-day advance since 2010. Equities in Hong Kong and emerging markets rallied, Bloomberg reported.
The DXY dollar gauge fell the most since Donald Trump won the US elections as the Fed minutes showed uncertainty over how his policies would impact the pace of interest-rate increases.
The offshore yuan recovered from an earlier loss to head for its fourth-straight gain of 2017, while the yen headed for its strongest level in more than three weeks. The MSCI Emerging Markets Index rallied to a two-month high and Europeans stocks erased earlier losses, Bloomberg added.
The ringgit strengthened against the pound sterling to 5.5094 from 5.5163 but slipped against the Singapore dollar to 3.1292 from 3.1096 and was weaker against the Euro at 4.7170 from 4.6937.
At Bursa Malaysia, 28 out of the 30 stocks in the FBM KLCI were in the positive zone as the KLCI resumed its upward trend . The firm crude oil price, a recovery in the ringgit could provide the right ingredients for the stock market to continue its winning way.
Axiata rose 14 sen to RM4.65 and added 2.13 points to the KLCI. Maxis gained eight sen to RM6.15, Telekom was up two sen to RM6.01 and Digi one sen to RM4.90.
Maybank gained 11 sen to RM8.19 and nudged the index up 1.91 points. RHB Bank rose eight sen to RM4.85 while Hong Leong Bank and CIMB advanced six sen each to RM13.36 and RM4.66 and Public Bank four sen higher to RM19.86.
MISC rose 23 sen to RM7.50, pushing the index up 1.7 points as investors ignored analysts' concerns about weaker earnings ahead. Genting Bhd
added 13 sen to RM8.07, Genting Malaysia two sen to RM4.64 while Tenaga was flat RM13.84.
Crude palm oil for third-month delivery fell RM20 to RM3,121 per tonne. Far East added 30 sen to RM8.50, Genting Plantations 18 sen to RM11.06, PPB Group eight sen higher at RM16, IOI Corp three sen to RM4.44 and KL Kepong was flat at RM24.02.
Aeon Credit was the top gainer, up 40 sen to RM14.80, SAM Engineering added 30 sen to RM5.40, MPI 23 sen to RM7.65 while Ann Joo gained 17 sen to RM2.36.
Oil prices steadied on Thursday as a fall in US crude inventories balanced doubts that producers would cut output as promised to reduce global oversupply, Reuters reported. US light crude was down 10 cents to US$53.16 and Brent fell 14 cents to US$56.32.
Petronas Chemicals rose nine sen to RM7.20, Petronas Gas two sen higher at RM21.50 but Petronas Dagangan slipped two sen to RM23.76.
Among the key regional markets,
Japan’s Nikkei 225 fell 0.37% to 19,520.69;
Hong Kong’s Hang Seng Index rose 1.46% to 22,45.69;
CSI 300 slipped 0.02% to 3,367.79;
Shanghai’s Composite Index rose 0.21% to 3,165.41;
Hang Seng China Enterprise jumped 1.67% to 9,598.68;
Taiwan’s Taiex added 0.77% to 9,358.14;
South Korea’s Kospi fell 0.18% to 9,358.14 and
Singapore’s Straits Times Index climbed 1.12% to 2,954.14.
Spot gold rose US$7.11 to US$1,170.76.
Limited time offer:
Just RM5 per month.
