KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
The ringgit opened stronger at 4.4325/4.4450 against the US dollar on Thursday, up from Wednesday's close of 4.4440/4.4465, as the USD Index softened by 0.91%, closing at 106.036 points. The ringgit has gained 0.95% since Nov 14, rebounding from 4.4855 to 4.4432, as the "Trump Trade" effect eased, according to Bank Muamalat’s chief economist Afzanizam Rashid.
Factors Supporting the Ringgit:
- The Federal Reserve is expected to cut rates by 0.25% next month, though concerns linger over monetary easing in 2025 amid persistent inflation risks and a resilient US economy.
- October’s core PCE inflation rose to 2.8% from 2.7%, reflecting sticky price levels.
- The US job market remains robust, with a decline in the four-week average of jobless claims.
Performance Against Major Currencies:
Strengthened:
- Japanese yen: 2.9288/2.9375 (from 2.9311/2.9356)
- Singapore dollar: 3.3054/3.3152 (from 3.3055/3.3106)
- Philippine peso: 7.55/7.57 (from 7.56/7.57)
Weakened:
- British pound: 5.6186/5.6345 (from 5.5962/5.6044)
- Euro: 4.6812/4.6944 (from 4.6691/4.6759)
- Thai baht: 12.8348/12.8803 (from 12.8342/12.8597)
- Indonesian rupiah: Nearly flat at 278.1/279.0 (from 278.6/279.1).
Outlook:
Afzanizam predicts the ringgit could gain further but remains cautious as the outlook hinges on evolving US economic data, inflation trends, and the Fed's monetary policy trajectory.
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