KUALA LUMPUR (Jan 12): The FBM KLCI rose with oil and gas entities' shares after crude oil prices gained on a weaker US dollar. Higher oil prices could have also led to a stronger ringgit.

At 9:14am, the KLCI rose 2.68 points or 0.2% to 1,677.89 points. The KLCI rose on gains in stocks like Petronas Gas Bhd and Petronas Dagangan Bhd.

Earlier, the ringgit strengthened to 4.4655 against the US dollar at 9:06am. The ringgit tracks crude oil prices as the commodity forms a crucial portion of the Malaysian economy.

Malaysian shares might have taken the cue from US President-elect Donald Trump's Wednesday press conference, which lacked clarity on the US' fiscal policy. Such sentiment weakened the US dollar as US bond yields fell.

As crude oil is transacted in US dollars, a weaker US dollar makes the commodity cheaper for buyers with other currencies.

In overnight crude oil markets, Brent futures increased US$1.46 or 2.7% to US$55.10 a barrel while the US' West Texas Intermediate rose US$1.43 or 2.8% to US$52.25.

Reuters reported that US Treasuries rallied across the board on Wednesday, while the dollar fell to one-month lows after Trump, in a widely-awaited press briefing, failed to provide clarity on future fiscal policies.

In Malaysia today, TA Securities Holdings Bhd wrote in a note : "External uncertainties with regards to the new US administration's policies towards Asia and elevated price levels of major banking stocks should restrict the benchmark index's (KLCI) near-term upside."

Trump's inauguration as US president will be held this January 20.