KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Bank Negara Malaysia (BNM) is refining a proposal from the Reserve Bank of India (RBI) to establish a Local Currency Settlement Framework (LCSF) aimed at increasing the use of the ringgit and Indian rupee in bilateral trade, according to the Ministry of Investment, Trade, and Industry (Miti). Key Benefits of LCSF Reduced reliance on the US dollar in trade transactions. Lower transaction costs , leading to competitive pricing of goods. Enhanced bilateral trade opportunities for entrepreneurs and investors in Malaysia and India. Progress and Impact The share of bilateral trade settled in ringgit and rupees rose from 4.4% in 2022 to 4.8% in 2023 , per BNM data. India International Bank Malaysia became the first local bank to adopt the mechanism, using a Special Rupee Vostro Account with Union Bank of India. Implementation and Encouragement Malaysian businesses can settle trade in rupees , while Indian firms are encouraged to use the ringgit via BNM-appointed offices in India. This a...