KUALA LUMPUR – Bursa Malaysia opened higher and retreated thereafter today, bucking global trends as shares rose for the 11th day in a row to reach a fresh peak on optimism about the roll-out of Covid-19 vaccines and a new fiscal aid from Washington.
At 9.08am, the benchmark FTSE Bursa Malaysia KLCI eased 0.72 of-a-point to 1,607.35 from 1,608.07 at yesterday’s close.
The index opened 3.97 points higher at 1,612.04.
On the broader market, gainers outpaced losers 324 to 207, while 347 counters were unchanged, 1,283 untraded and 11 others suspended.
Total volume stood at 702.81 million units worth RM308.11 million.
Public Investment Bank in a note said as more people are vaccinated across key markets, such as the United States, and with US President Joe Biden looking to pump an extra US$1.9 trillion (RM7.6 trillion) in stimulus into the economy, the so-called reflation trade has gathered steam in recent days.
“Taking its cue from a stronger, albeit holiday-thinned, Asian session, Europe’s major indices were a sea of green in early deals, with Britain’s FTSE 100 up 2.2%.
“With China and Hong Kong markets still closed for the Chinese New Year holiday, Japan’s Nikkei led the way, climbing 1.9% to reclaim the 30,000-point level for the first time in more than three decades.”
Meanwhile, the ringgit rose for the sixth straight day as bullish oil prices and the latest development of Covid-19 vaccine roll-out added to optimism over the currency’s prospects.
At 9.05am, the local currency increased to 4.0300/0340 against the US dollar from yesterday’s close of 4.0320/0370.
Axi chief global market strategist Stephen Innes said the ringgit continues to get a boost from steady oil prices, vaccine optimism and a gradual easing of the movement control order, which seems to be on the cards sooner than later.
“This is very bullish for the ringgit and should see a gradual return of improving sentiment towards the ringgit as we move into the second quarter.
“The local note will face a keen foreign investors’ test as the government will auction RM2 billion Malaysian Government Securities 2040 to settle on February 18, which will be a good gauge of foreign investor uptake for local debt amid current economic headwinds.
“I would expect it to go well, given the global investors’ insatiable chase for yield.”
Overall, Innes said he believes the ringgit is returning to 4.0 level soon.
The local currency was traded higher against other major currencies today, except the British pound.
It increased against the Singapore dollar to 3.0470/0512 from yesterday’s close of 3.0481/0523, and strengthened vis-a-vis the euro to 4.8904/8969 from 4.8920/8979 previously.
The ringgit appreciated against the yen to 3.8203/8248 from 3.8258/8313, but weakened against the British pound to 5.6106/6165 from 5.6033/6144. – Bernama, February 16, 2021
.jpg)
