KUALA LUMPUR (Sept 8): The FBM KLCI rose 1.81 points or 0.1%, while the ringgit strengthened on higher crude oil prices and as investors waited for the European Central Bank’s (ECB) monetary policy announcement today.

At 5 p.m., the KLCI closed at 1,691.38 points, after vacillating between gains and losses. During the day, the index moved between its intraday high and low at 1,692.12 and 1,686.37 points respectively.

The ringgit strengthened to 4.0392 against the U.S. dollar, and compared to the euro, the ringgit appreciated to 4.5540.

The ringgit strengthened as crude oil prices rose after U.S. industry data showed large drawdown in crude stocks and amid anticipation U.S. policy makers will postpone interest rate hikes.

The ringgit tracks crude oil prices, as the commodity forms a crucial portion of the Malaysian economy.

Reuters reported oil prices rose more than 1.5% on Thursday, after U.S. industry data showed a large drawdown in crude stocks, reflecting the temporary impact of an Atlantic storm.

Benchmark Brent crude oil was up 80 cents a barrel at US$48.78 by 0820 GMT, after settling up 72 cents on Wednesday.

It was also reported the ECB is expected to keep policy rates unchanged, but is likely to take further stimulus measures by extending its asset purchase programme by the end of this year, according to a Reuters poll.

In Malaysia, Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com that the KLCI took the cue from factors, including higher crude oil prices and ECB monetary policy expectation.

“Investors are waiting for the European Central Bank’s decision on interest rates, which will be announced soon,” Leong said via telephone.

At Bursa Malaysia, 1.69 billion shares, worth RM1.58 billion, were traded. There were 402 gainers, against 374 decliners.

Scientex Bhd led gainers, while Dutch Lady Milk Industries Bhd was the top decliner. The top active counter was Sanichi Technology Bhd.