Malaysia, November 28, 2022 — cybernewschronicle.com — Malaysia’s financial markets presented a mixed picture on Friday, with the ringgit strengthening to a three-month high while the benchmark stock index declined as investors moved to lock in recent gains. The ringgit closed at 4.4760 against the US dollar at 5 pm, appreciating 0.43% on the day, according to trading data. This advance comes amid shifting domestic political dynamics and ahead of key fiscal events.
Bursa Malaysia’s main index finished 1% lower, with decliners outpacing advancers 629 to 347. A total of 362 counters remained unchanged.
Trading volume reached 4.4 billion shares, with total turnover valued at RM2.75 billion. The profit-taking occurred despite fresh foreign buying: after six consecutive days of net outflows, foreign investors purchased RM341 million worth of equities, according to statistics from Bursa Malaysia. Local institutions and retail merchants were net sellers, disposing of RM159 million and RM182 million in stocks respectively.
Key Stock Movers
Among the notable decliners on Bursa Malaysia, Nestle dropped RM1.10 to RM130.40. Malaysian Pacific Industries fell 44 sen to RM27.40, PPB eased 36 sen to RM16.20, and Dutch Lady declined 28 sen to RM31.10. On the upside, Hong Leong Industries gained 18 sen to RM9.40.
Hextar Technologies rose 62 sen to RM13.60, Computer Forms added 41 sen to RM1.90, Malaysia Airports increased 21 sen to RM6.35, and Hong Leong advanced 18 sen to RM9.40.
Political and Fiscal Catalysts
Market participants are closely watching the composition of the Cabinet and the reconvening of Parliament for the reintroduction of Budget 2023. Analysts at UOB have identified these political developments as opening the door for pro-growth measures and domestic reforms. The research also highlighted additional Overnight Policy Rate (OPR) increases as among the domestic triggers for the ringgit’s trajectory.
Prime Minister Datuk Seri Anwar Ibrahim has declared Monday, November 28, 2022, a special public holiday.
Regional Context
In the broader region, the most extensive MSCI index of Asia-Pacific stocks outside Japan declined by approximately 0.2%. Other major Asian indices also ended lower: Japan’s Nikkei 225, Hong Kong’s Hang Seng, South Korea’s Kospi, and Singapore’s Straits Times Index all finished in negative territory. Investors will be monitoring the upcoming parliamentary session for the reintroduction of Budget 2023 and the final composition of the new Cabinet.
The direction of the ringgit is expected to remain sensitive to domestic reform announcements, potential OPR decisions, and the pace of foreign portfolio flows into Malaysian equities. The interplay between profit-taking pressures and the return of foreign buying will likely set the tone for Bursa Malaysia in the near term.
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