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, with Malaysia's ringgit hitting its highest level in over three years, bolstered by China's stimulus measures aimed at revitalizing its economy. The People's Bank of China (PBOC) cut its medium-term loan rate following a broad policy easing package, sparking a rally across regional currencies and stocks.
The ringgit, which has been the best-performing currency in Asia this year, appreciated by 0.7% against the US dollar, reaching 4.12 per dollar, its highest point since June 2021. The Indonesian rupiah and Philippine peso also posted strong gains, rising by 0.6% each.
China's policy moves, which include support for its stock market and the ailing property sector, were seen as a significant step to address the economic slowdown. The MSCI's broadest index of Asia-Pacific shares rose 1.4%, reaching its highest level since February 2022, while the MSCI emerging markets currency index hit a record high.
Indonesia is expected to cut interest rates further, following last week's surprise reduction, as a stronger rupiah and subdued inflation provide room for growth-focused policies. Similarly, the Philippine central bank is expected to ease rates, with officials suggesting further cuts could align with the US Federal Reserve's actions.
Overall, the yuan edged 0.2% higher, while Shanghai stocks rose 1.7%. Analysts expect continued benefits for Asian currencies, driven by China's policy easing, a softer US dollar, and improving regional growth prospects.
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