KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Asian currencies surged on Wednesday as China's new stimulus measures boosted investor confidence. The Thai baht reached a 30-month high, rising 0.9%, and has gained approximately 11% this quarter. This rapid appreciation is putting pressure on Thailand's central bank to intervene, potentially cutting interest rates to maintain trade competitiveness and protect the tourism sector.
The rally in the baht, one of Southeast Asia's top performers this year with a 4.6% increase, is driven by political stability, foreign inflows, and record-high gold prices. However, concerns are growing about its impact on exporters, leading to calls for the Bank of Thailand to address the currency's strength. The Thai finance ministry and central bank are set to meet next week to discuss these issues and the country's inflation target.
Other Asian currencies also saw gains. The Malaysian ringgit appreciated by 1.1% to 4.105 per US dollar, its highest level since June 2021, supported by strong economic growth and improved trade performance. Bank Negara Malaysia is expected to maintain its interest rates through 2025.
Analysts attribute these currency gains to factors such as China's stimulus, a softer US dollar, and improving economic conditions in the region. Christopher Wong, a currency strategist at OCBC, noted that further growth in the yuan, a potential US Federal Reserve easing cycle, and regional stability should continue to benefit Asian currencies.
While most equity markets in emerging Asia were down, with Kuala Lumpur and Jakarta stocks falling 0.2% and 1.4%, respectively, Taiwan's stock market saw a 1.5% increase, buoyed by strong AI-related exports. Taiwan's export orders exceeded expectations in August, driven by demand for artificial intelligence chips, a trend expected to support Taiwan's economy in the coming years.
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