KUALA LUMPUR – The ringgit opened slightly higher against the US dollar today ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting, which is scheduled for tomorrow.
At 9.02am, the local note stood at 4.3820/3850 versus the greenback from yesterday’s close of 4.3830/3870.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid expects BNM to keep the borrowing cost unchanged as the central bank would assess the country’s economy independently.
“The expected sharp increase in the US Federal Reserve (Fed) Fund Rate has led to a perception that other central banks would follow similar footsteps.
“While the Fed can be a trendsetter for rates, we think BNM would weigh various angles before they make any move,” he said.
Afzanizam said fears over global growth prospects following the anticipated aggressive monetary tightening by the Fed has taken a serious toll on global equity markets.
He said it was definitely a risk-off mode whereby investors were seeking refuge over the heightened uncertainties.
“We could see the 10-year US Treasury yield fall by about five basis points to 2.98% at the moment while the US Dollar Index rises 0.08% to 103.731 points,” he said.
Another analyst said the anticipation of stronger-than-expected gross domestic product data in the first quarter of 2022, to be released on Friday, would spur sentiment in the market.
Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.
The local note decreased versus the Japanese yen to 3.3739/3767 from yesterday’s close of 3.3407/3440, eased against the euro to 4.6274/6306 from 4.6135/6178, and weakened vis-a-vis the British pound to 5.4030/4067 from 5.3972/4022.
However, the ringgit appreciated against the Singapore dollar to 3.1469/1495 from yesterday’s 3.1478/1509.
Bursa Malaysia rebounded from yesterday’s losses to open higher today, buoyed by bargain-hunting activities, a dealer said.
At 9.20am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 5.54 points to 1,554.72 from yesterday’s close of 1,549.18.
The index opened 2.37 points higher at 1,551.55.
On the broader market, losers trounced gainers 470 to 120, while 241 counters were unchanged, 1,412 untraded and 14 others suspended.
Total turnover stood at 444.24 million shares worth RM212.97 million.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said although the market expects to experience some bargain-hunting activities, overall sentiment remains cautious over the heightened volatility on regional markets.
“The FBM KLCI closed lower to below the 1,550 level yesterday due to continuous selling by foreign funds, therefore we reckon the index to trend within the 1,540-1,555 range today,” he said.
Among the heavyweights, Petronas Gas added 28 sen to RM17.16, Public Bank rose eight sen to RM4.64, PPB Group improved 30 sen to RM16.68, and Hartalega gained 11 sen to RM4.39.
Of the actives, Serba Dinamik contracted 2.5 sen to 8.5 sen, Ta Win stayed flat at 13 sen, Pertama Digital added half-a-sen to 94 sen, while Hibiscus Petroleum lost five sen to RM1.32.
On the index board, FBM ACE shed 33.59 points to 5,349.42, FBM 70 dipped 40.47 points to 13,184.08, FBM Emas Shariah Index dropped 12.25 points to 11,515.72, while FBMT 100 Index advanced 21.93 points to 10,766.23 and FBM Emas Index inched up 3.83 points to 11,087.44.
Sector-wise, the Financial Services Index rose 52.67 points to 16,660.71, the Industrial Products and Services Index was 1.76 points lower at 198.43, and the Plantation Index slipped 48.79 points to 8,202.64. – Bernama, May 10, 2022
