KUALA LUMPUR (Sept 11): The FBM KLCI reversed its early losses and climbed at mid-morning today on improved sentiment and a firmer outlook for the ringgit.

At 10am, the FBM KLCI gained 2.71 points to 1,782.61.

Gainers led losers by 339 to 207, while 284 counters traded unchanged. Volume was 651.64 million shares valued at RM279.78 million.

The gainers included Nestle (M) Bhd, Lotte Chemical Titan Holding Bhd, Kawan Fodo Bhd, Hume Industries Bhd, SAM Engineering & Equipment Bhd, Scientex Bhd and Hai-O Enterprise Bhd.

The actives included Sino Hua-An International Bhd, Anzo Holdings Bhd, Iris Corp Bhd, Mlabs Systems Bhd, Perak Transit Bhd, Palette Multimedia Bhd and JAG Bhd.

The losers included Dutch Lady Milk Industries Bhd, Ajinomotop (M) Bhd, Petronas Gas Bhd, British American Tobacco (M) Bhd, Lingkaran Trans Kota Holdings Bhd, Hartalega Holdings Bhd and QL Resources Bhd.

The U.S. dollar won a reprieve from risk aversion on Monday after North Korean dictator Kim Jong Un decided to hold a party over the weekend rather than launch another missile, tempering safe havens like the yen and Treasuries, according to Reuters.

Investors remained cautious over the possible economic impact of Hurricane Irma as it chewed its way up the Florida coast, knocking out electricity to 2.5 million homes and businesses statewide, it said.

Hong Leong IB Research said that in the US, it maintains a sideways view on Wall Street with the weaker US dollar trend, coupled with the ongoing political tensions, which investors could stay cautious in the stock markets if North Korea news continues to surface within the media.

“However, stocks on the local front could see further trading opportunities following the stronger ringgit momentum recently, coupled with higher trading volumes on Bursa Malaysia on small and lower liners after positive inflows of foreign funds last week,” it said.

Meanwhile, the research house said it is turning mildly positive on ringgit after the recent sharp rebound.

In an economic note today, the research house said it sees the ringgit appreciation bias to be sustained by a confluence of domestic and external factors.

“Our ringgit forecast range is revised to RM4.10-4.25/US$ for remainder of 2017.

“We introduce 2018 forecast of RM3.90-4.10/US$. Key downside risks are (i) hawkish Fed keeping to its scheduled rate hike and balance sheet unwinding (ii) war outbreak,” it said.