KLCI gains on stronger ringgit, higher oil price

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KUALA LUMPUR (Nov 22): The FBM KLCI rose 2.86 points or 0.2% as the
ringgit appreciated amid crude oil price gains. Malaysian shares rose with Asian equities today after US stocks closed at record highs overnight on Tuesday.

At Bursa Malaysia today, the KLCI settled at 1,723.54 points at 5pm.

In currency markets, the ringgit appreciated to 4.1110 against the US dollar at 5:30pm

The ringgit appreciated as crude oil prices rose. Reuters reported that oil prices rose on Wednesday as ongoing cuts of piped Canadian crude to the United States added to falling US crude inventories, while expectations of a prolonged OPEC-led production cut also offered support. Brent crude futures, the international benchmark for oil prices, were at US$62.97 per barrel, up 40 cents, or 0.6 percent.

In Malaysia, CIMB Investment Bank Bhd analyst Nick Foo Mun Pang told theedgemarkets.com that “market sentiment in Asia was boosted by strong global corporate earnings and economic growth".

"Locally, the KLCI was supported by stronger oil prices and ringgit's (appreciation) against US dollar. From a technical perspective, the KLCI movement indicated a reduction in selling pressure,” Foo said.

Across Bursa Malaysia, trading volume was 2.24 billion shares worth RM2.61 billion. There were 521 gainers versus 304 decliners.

Top gainers included oil and gas-related companies Hengyuan Refining Co Bhd, Petronas Dagangan Bhd and Petron Malaysia Refining & Marketing Bhd.

Across Asian share markets, Japan's Nikkkei 225 climbed 0.48% while Hong Kong's Hang Seng rose 0.62%.

Reuters reported that Asian shares joined a global rally to reach their highest in a decade on Wednesday as strong world growth and rising corporate profits lured hordes of investors into equities, while oil prices jumped closer to a recent 2½ year top.