KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
There is no sign of slowing down as the FBM KLCI continued to fall with weakening Ringgit against the USD.
As of 5pm today, the FBM KLCI closed at 1,654.37 as stocks like Tenaga Nasional Bhd, SapuraKencana Petroleum Bhd and other energy counters lead the declined. The ringgit depreciated to 3.9365 against the US dollar after weakening to a fresh level at 3.9420 earlier.
To put into perspective, the Malaysian stocks fell to their lowest in more than two years.
With the weakening Ringgit and the announcement of the decline in the Malaysia's international reserves, that fell below the US$100 billion threshold, at US$96.7 billion as at July 31 this year, according to Bank Negara Malaysia's statement last Friday (Aug 7). This compared to US$100.5 billion on July 15. The Malaysia's political scene is not encouraging as well with the recent Cabinet reshuffle. Such political sentiment and other global factors have not augured well for the ringgit. The global factors that contribute to the decline in Ringgit includes the lower crude oil prices and anticipation of US interest rate hikes this year.
The Kuala Lumpur composite index shed 1.68 percent to 1,654.37, its lowest close since March 2013, as the ringgit hit its weakest since September 1998. The Indonesian index fell 0.5 percent as foreign investors sold a net 114.4 billion rupiah ($8.44 million) worth of shares, a fifth straight day of sales. Coal miners such as Indo Tambangraya and Adaro Energy were among the decliners. The Philippine index erased most early gains, ending nearly flat amid foreign-led selling in energy shares with First Gen Corp hitting a three-week low. Bangkok's SET index eased 0.6 percent in the final week of the quarterly reporting season. Shares of Thai Airways International Pcl fell 0.8 percent ahead of its earnings results due on Tuesday. Bucking the trend, Vietnam's benchmark VN Index closed 1.78 percent higher, its biggest jump since July 22, led by Vinamilk and BaoViet Holdings. Singapore market was closed for National Day holidays.
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| image captured from Bursa Malaysia |
According to some analyst, it's expected to see some rebound in the Malaysia market with such a steep drop in the market. What say you?
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