KLCI climbs at 11th hour; ringgit weakens

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KUALA LUMPUR (Nov 9): The FBM KLCI eked out a 0.41-point gain after the index rose sharply in the final trading minutes.

At 5pm, the KLCI settled at 1,686.11. The index erased losses from its intraday low of 1,680.79.

The KLCI's erased losses amid a weaker ringgit at 4.3763 versus the strengthening US dollar following stronger US employment data. Such data lends credence to a potential US interest rate hike in December this year.

Higher US interest rates do not bode well for Asian markets as investors turn their attention to US dollar-denominated assets. Hong Kong's Hang Seng fell 0.61% while South Korea's Kospi declined 0.75%.

In Malaysia, analysts said the weaker ringgit directed the spotlight on export-based companies.

"Some of the trading ideas we can derive from this sort of market situation are the export players like glove and technology counters," Malacca Securities Sdn Bhd technical analyst Loui Low Ley Yee told theedgemarkets.com.

Across Bursa Malaysia, there were 434 gainers versus 469 decliners. The exchange saw 2.1 billion shares worth RM1.7 billion traded.

The top gainer was Kuala Lumpur Kepong Bhd while Nestle (M) Bhd was the biggest decliner. Bumi Armada Bhd was the most-actively traded counter.

Among gainers, Pasukhas Group Bhd shares rose one sen or 5% to close at 23 sen. Pasukhas shares rose after The Edge Malaysia business and investment weekly (Edge Weekly) reported that new major shareholders were expected to inject a new business into Pasukhas.

Edge Weekly, quoting sources, reported that the new business was related to the trading and supply of high-voltage transformers.

Tomorrow, Malaysian markets will be closed for the Deepavali holiday. Trading resumes this Wednesday.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)