KUALA LUMPUR (March 3): The FBM KLCI settled up 1.87 points or 0.13% at Bursa Malaysia's afternoon break today after paring gains while the ringgit weakened ahead of Bank Negara Malaysia's (BNM) interest rate decision later today.

At 12:30pm, the KLCI settled at 1,468.81 after rising to its intraday high at 1,481.36 as global stock markets took cue from US equities' Monday overnight rise.

"Tracking the strong rebound on Wall Street, we believe buying interest could spill over to stocks on the local exchange, lifting the KLCI towards 1,480-1,500 levels. Meanwhile, support will be set along 1,444-1,450. Besides, market participants will be monitoring policies crafted by the new (Malaysia) administration for investment decisions moving forward," Hong Leong Investment Bank Bhd wrote in a note today.

Across Bursa so far today, 1.76 billion shares worth RM1.16 billion were traded. Top decliners included CIMB Group Holdings Bhd and Malaysia Airports Holdings Bhd.

In currency markets, the ringgit weakened to 4.2045 against the US dollar at 12:28pm. The exchange rate so far today was between 4.2003 and 4.2070 as investors waited for BNM's interest rate decision later.

On Jan 22, 2020, BNM said in a statement that its monetary policy committee (MPC) decided to reduce the overnight policy rate (OPR) to 2.75%. On Nov 5, 2019, the MPC maintained the OPR at 3%, the central bank said then.

Yesterday (March 2), UOB Group interest rate strategist Victor Yong wrote in a note that market pricing is for the central bank to ease monetary policy.

"Analysts’ consensus is evenly split (13:9) between a 25-basis-point cut to the OPR and rates on hold scenario. Our view is for BNM to hold OPR unchanged at 2.75% for now, though downside risks has intensified with the spread of Covid-19 outside of Mainland China," Yong said.