KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
The Thai baht fell to a six-week low on Thursday, while most Asian currencies fluctuated in a narrow range and regional equities edged lower as traders adjusted their expectations for US Federal Reserve rate cuts and considered the impact of a potential second Trump presidency.
The baht dropped by 1% to 33.83 per US dollar, marking its lowest level since Sept 10, as the currency resumed trading after a holiday. Other regional currencies such as the Singapore dollar and Philippine peso gained 0.2%, while the South Korean won increased slightly by 0.1%.
The US dollar index, which tracks the currency against six rivals, remained close to a three-month high, buoyed by the perception that an outsized 50-basis-point rate cut from the Fed is now less likely. This sentiment was reinforced by rising treasury yields. Additionally, anticipation of a Trump victory in the US presidential election added to the dollar's strength, as his tax and tariff policies are considered inflationary, potentially keeping US rates high.
In Indonesia, the rupiah rose 0.2%, supported by investor confidence in the newly sworn-in cabinet, which includes Finance Minister Sri Mulyani Indrawati. However, equities in Jakarta slipped 0.4%.
In Malaysia, annual inflation came in slightly lower than expected at 1.8% in September. Analysts predict the Malaysian central bank will maintain its current policy stance through 2025, distinguishing it from other Emerging Asia central banks.
Meanwhile, Philippine equities and stock markets in Kuala Lumpur, Shanghai, and Bangkok fell between 0.2% and 0.9%, reflecting broader concerns over election anxiety in the US and changing monetary policy expectations. In contrast, Singaporean shares edged up 0.4%.
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