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.
Optimism grows that Malaysia’s currency could strengthen further, fueled by expected monetary easing and structural reform.
Analysts See Ringgit Gaining Against the Dollar
OCBC forecasts the ringgit could strengthen to 4.15/USD in Q4 if Bank Negara Malaysia (BNM) delivers further rate cuts.
Maybank projects an even stronger outcome—4.10/USD by December.
MUFG expects a 1.5% gain from recently stalled levels, supported by better export competitiveness from a softening US tariff regime.
Supporting Factors: Policy and Sentiment Alignment
BNM cut rates 25 bps in July, becoming the last central bank in Southeast Asia to do so.
Record foreign inflows: Q2 saw US$4.3 billion (RM17.4 billion) flow into Malaysian bonds, indicating strong capital interest.
Federal Reserve easing trends and a weaker greenback help cushion ringgit depreciation risks.
Structural Tailwinds Underpin Confidence
The government’s bold five-year growth blueprint through 2030, combined with a RM2.8 billion stimulus (via cash handouts and fuel relief), has improved macro confidence.
Tightened fiscal policy—like reduced diesel subsidies and expanded SST—supports market expectations for prudent management.
MUFG’s Lloyd Chan cites these structural reforms as core to the ringgit’s resilience, noting in this environment the currency could reach 4.15/USD year-end.
Key Risks on the Radar
Sustained tariff uncertainty remains a concern. Despite reductions to 19%, the threat of higher duties could upset confidence and spur ringgit decline.
Ebury’s Matthew Ryan warns renewed trade volatility could create economic headwinds and trigger ringgit sell-offs.
What’s Ahead: Watch These Events
Late-week focus on Japan CPI, Malaysia CPI, and regional trade and policy updates from Japan, South Korea, and Indonesia. These will influence both FX and policy sentiment.
Bottom Line
The ringgit is on track for stronger quarters ahead—propelled by monetary easing, sound fiscal strategy, and global fund flows. But watch for tariff shocks and regional data surprises—they’ll test how steady the rally really is.
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