Bursa rebounds in early trade, bullish trade lifts ringgit

KUALA LUMPUR – Bursa Malaysia rebounded to open higher in the early trading session today, buoyed by renewed buying interest.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI was 4.41 points higher at 1,601.54, compared to yesterday’s close of 1,597.13.

The barometer index opened 2.49 points firmer at 1,599.62.

On the broader market, gainers surpassed losers at 207 versus 103, while 222 counters were unchanged, 1,721 untraded and 12 others suspended.

Total turnover stood at 199.14 million worth RM70.68 million.

In a note, Malacca Securities Sdn Bhd said it expects volatility to persist, given the higher-than-expected United States Consumer Price Index data, adding that investors may focus on the accelerated inflation rate which may trigger a more hawkish tone from the US Federal Reserve regarding its monetary policies.

On commodities, it said oil benchmark Brent crude was trading around US$105 (RM444) per barrel, while crude palm oil futures (FCPO) hovered above RM6,100 – both firmer on the back of easing Covid-19 restrictions in China.

“We expect to see buying interest continuing to revolve around the plantation and oil and gas sectors amid firmer Brent crude oil and FCPO prices.

“Meanwhile, the construction and building material sectors are gaining traction as investors are putting government-related counters on the radar amid speculations of an early election,” it said.

Among the heavyweights, both Maybank and CIMB rose 2 sen to RM8.84 and RM5.35, respectively, Public Bank added 1 sen to RM4.68, IHH Healthcare gained 7 sen to RM6.43, while Petronas Chemicals was flat at RM10.26.

Of the actives, ATA IMS and Vortex inched up 1.5 sen each to 54.4 sen and 21 sen, respectively, while CSH Alliance, Techna-X and China Ouhua bagged 0.5 sen each to 14.5 sen, 10 sen and 8.5 sen, respectively.

On the index board, FBMT 100 Index recovered 39.26 points to 11,135.79, FBM Emas Index was 40.98 points firmer at 11,484.65, and FBM Emas Shariah Index added 51.01 points to 12,107.71, FBM 70 strengthened 83.84 points to 13,822.14, and FBM ACE ticked up 31.58 points to 5,836.69.

Sector-wise, the Industrial Products and Services Index improved 0.50 of-a-point to 213.52, the Financial Services Index jumped 34.71 points to 16,753.69, and the Plantation Index rose 27.53 points to 8,502.87.

Meanwhile, the ringgit snapped its five-day losing streak against the US dollar in the early trade today as the encouraging trade figures for February sparked risk appetite for the local currency, a dealer said.

At 9am, the local note rose to 4.2290/2320 versus the greenback from yesterday’s close of 4.2305/2330.

“This (trade performance) managed to offset the currently stronger US dollar on the back of growing expectations that the US Federal Reserve might increase its key rate, as the latest data showed that inflation was higher than expected.

“Malaysia’s transition to the endemic phase, coupled with this positive trade (data) helped boost sentiment in the market,” he said.

The US Labour Statistics Bureau reported that the yearly Consumer Price Index stood at 8.5%t, slightly higher than the 8.4% projected by the market. 

Back home, the Malaysian Statistics Department said Malaysia’s total trade for February 2022 grew 17.5% year-on-year to RM184.8 billion, with exports up by 16.8% to RM102.3 billion and imports rising 18.4% to RM82.5 billion.

Chief statistician Datuk Seri Mohd Uzir Mahidin said higher exports were recorded in most states such as Penang (RM5.7 billion), Sarawak (RM3 billion), Kedah (RM2.2 billion), Labuan (RM1.6 billion), Selangor (RM1.5 billion), Sabah (RM1.2 billion), Johor (RM1.1 billion), Kuala Lumpur (RM1 billion), Pahang (RM103.8 million) and Perlis (RM23.9 million).

However, exports decreased in Melaka (RM1.2 billion), Perak (RM1.1 billion), Terengganu (RM320.2 million), Kelantan (RM199.5 million), and Negri Sembilan (RM31.7 million).

Among the top five major importing states, Selangor remained as the largest contributor with a share of 26.3%, followed by Penang (23.1%), Johor (20.2%), Kuala Lumpur (7.1%), and Kedah (6.2%).

Meanwhile, the ringgit was trading firmer against a basket of major currencies.

It appreciated against the Singapore dollar to 3.0993/1020 from 3.1015/1036 yesterday, and strengthened versus the Japanese yen to 3.3665/3692 from 3.3674/3697.

The local unit increased vis-a-vis the British pound to 5.4952/4991 from 5.5026/5059 and advanced against the euro to 4.5741/5773 from 4.5998/6025 previously. – Bernama, April 13, 2022