KUALA LUMPUR: The FBM KLCI rose by 3.84 points at the midday close points amid a strong day for emerging market currencies as the ringgit rose to its highest since November on the back of improved economic forecasts by Bank Negara Malaysia as well as a weakening in the dollar.
The index closed at 1,749.59 points at midday, having earlier fallen to an intraday low of 1,744.30 points.
As at 1230PM, total turnover for the KLCI was at 1.98 billion shares valued at RM920.33mil.
The broader market was mixed with an equal number of gainers and losers. There were 403 losers and 403 gainers and 378 counters unchanged.
Asian markets followed the cue from US markets and fell further on Monday after a key US healthcare overhaul failed, triggering skepticism over President Donald Trump's ability to implement his economic policies.
Japan's Nikkei 225 index led the losers after falling by 1.41% at midday. Hong Kong's Hang Seng Index and Singapore's Straits Times Index also recorded declines of 0.28% and 0.53% respectively.
On the other hand, emerging market currencies rallied further as the dollar fell following the failure of the healthcare plan, also known as Trumpcare. On Friday, Republicans failed to get the necessary votes on the American Healthcare Act, which is a comprehensive US healthcare reform plan backed by Trump.
The dollar's decline spurred the ringgit to its highest since November. As at 1230PM, the currency was last traded at RM4.4115 against the greenback compared to RM4.4262 last Friday.
The US dollar index, which measures the dollar's value relative to a basket of foreign currencies, fell to a new year-to-date low of 99.29 points. To date, the index has declined by 2.86%.
The ringgit's recent ascent may also have been boosted by improved economic projections by Bank Negara. Following the release of its 2016 Annual Report last week, the central bank now expects Malaysia's GDP to grow by between 4.3% and 4.8% this year amid a continued improvement in consumer confidence as well as exports.
Meanwhile, as the dollar looks set to erasing gains spurred by Trump's election victory last year, gold and bonds climbed as investors shunned risk assets with the markets starting the week in a cautious mode, Bloomberg reported.
Brent crude rose fell five cents to US$50.75 per barrel while US crude fell 16 cents to US$47.81 per barrel.
At Bursa Malaysia, BAT was among the top gainers with a surge of 76 sen to RM47.92. GD Express Carrier Bhd was another top gainer after rising 18 sen to RM2.18.
Among the stocks that make up the FBM KLCI, Genting Malaysia contributed 0.98 points to the benchmark's increase after advancing 10 sen to RM5.67. CIMB contributed another 0.87 points to the index after advancing by six sen to RM5.68.
Among the banks, Maybank fell two sen to RM8.97 while Public Bank was unchanged at RM19.96.
As for the telcos, DiGi.Com rose two sen to RM5.16. Maxis rose one sen to RM6.41.
Crude palm oil’s benchmark third-month contract for June fell by RM46 to RM2,708 per tonne.
Among the plantation counters that make up the KLCI, KLK rose 20 sen to RM24.68 while Sime Darby fell two sen to RM9.38.
Among the key regional markets:
Japan’s Nikkei 225 fell 1.41% to 18,991.79 ;
Hong Kong’s Hang Seng Index fell 0.28% to 24,290.72 points;
Shanghai Composite Index rose 0.14% to 3,274.01;
Taiwan’s Taiex fell 0.23% to 9,880.29 ;
South Korea’s Kospi fell 0.57% to 2,156.56 ;
Singapore’s Straits Times Index fell 0.53% to 3,126.37 points.
Spot gold rose by USD13.03 to US$1,256.60 per troy ounce.
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