KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The Malaysian Ringgit climbed to a one-year high against the US dollar on Nov 12, strengthening past 4.13 per USD as easing global trade tensions and renewed risk appetite lift regional markets. The move marks a notable shift in sentiment, drawing foreign investors back into Malaysian assets after months of volatility.
Ringgit Strength Gains Momentum as Foreign Funds Return
A combination of improved global risk appetite, firm commodities, and resilient domestic fundamentals has fuelled the Ringgit’s recent climb. Oil and palm oil prices — key pillars of Malaysia’s export economy — remain supportive, while macro indicators show steady recovery.
Foreign investors have responded. Malaysian bonds saw more than USD 1 billion in inflows this quarter. On Nov 11 alone, the equity market recorded RM 198 million in net foreign buying — a reversal from the persistent outflows seen earlier in the year. With US rate cuts underway and rising concern over US Treasury risks, some Malaysian exporters are also converting dollar earnings back into Ringgit, adding upward pressure to the currency.
KLCI Holds Firm Above 1,600 as Corporate Outlook Improves
Supported by steady inflows and a recovering post-trade war environment, the FTSE Bursa Malaysia KLCI has remained comfortably above 1,600 for two months. Improved corporate earnings projections, government-led transformation policies, and targeted investments in high-tech industries continue to anchor the market.
Analysts expect the index to remain on an upward bias heading into 2025. Technology, banks, consumer names, and renewable energy remain key sectors attracting foreign institutional interest.
Macro Data Reinforces Malaysia’s Growth Story
Recent economic prints reflect broad economic resilience:
GDP grew 5.2% in Q3 2025, beating expectations
Unemployment held at 3.0%, signalling firm labour demand
Exports reached RM 138.7 billion in September, driven by E&E, palm oil, and crude oil
Inflation remains contained, allowing Bank Negara Malaysia to keep OPR steady at 2.75%
Fiscal initiatives targeting the digital economy, green tech and high-value manufacturing further strengthen the medium-term outlook.
How Investors Should Position as the Ringgit Strengthens
A stronger Ringgit opens a tactical window for Malaysians considering exposure to US dollar–denominated assets.
Key opportunities include:
Lower Entry Cost:
Ringgit appreciation means investors can convert into USD at a more favourable rate, reducing the cost of buying US equities or ETFs.
Portfolio Diversification:
Shifting part of a portfolio into international markets limits concentration risk tied to local currency and local market cycles.
Potential FX Upside:
Should the Ringgit weaken later, existing USD-based holdings could generate additional foreign-exchange gains.
Investors should align their decisions with risk tolerance, investment horizons, and the likelihood of further currency swings. For long-term portfolios, a stronger Ringgit often presents an advantageous entry point into global markets.
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