Bursa opens positive, ringgit stronger from Budget 2021

BURSA Malaysia rose higher across the board in early trade today as investors reacted positively to the Budget 2021 announcement on Friday, a budget which aims to boost economic recovery.

At 9.23 am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) rose 9.1 points to 1,528.74 after opening 1.99 point better at 1,521.63.

The overall market breadth was bullish with gainers surpassing losers 524 to 209, while 334 counters were unchanged, 1,081 untraded and 32 others suspended.

Total volume stood at 2.01 billion worth RM727.69 mil.

Meanwhile, the ringgit opened stronger on Monday on the back of the weaker US dollar and optimism over the Budget 2021 announcement on Friday.

At 9.06 am, the local currency stood at 4.1200/1290 versus the greenback, compared with Friday’s closing of 4.1275/1325.

Axi chief global market strategist Stephen Innes said after being held back last week, the ringgit is now playing catch up with the yuan and North Asian currencies, which have been soaring.

“Budget 2021 should be well received as it is anticipated to offer some tax relief and provide additional support to economic sectors where it is needed the most,” he told Bernama.

Innes said with Joe Biden being declared the United States President, it is believed that he would be able to reduce the level of trade fractions, especially in Asia.

“Pricing out global geopolitical risk under a Biden presidency could be the most undervalued plus of them all, as global supply chains could then redistribute goods in a more globalised fashion.

“Things could even return to the pre-pandemic level in the next 12- 24 months if a vaccine proves to be the ultimate recession stopper and a game-changing panacea for global growth, and this will be positive for Asia assets,” he noted. – Nov 9, 2020

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