[Dow Jones] KLCI may continue to rise in near term should MYR's momentum persist and amid local fund support, says UOB KayHian. Thinks MYR's strength has most impact on market run-up; notes MYR gained by over 4% (and about 10% from this year's low) vs USD in past weeks. "A rising ringgit is positive to the KLCI as it encourages more foreign participation, and a falling U.S. dollar is linked to rising risk appetite." Says beneficiaries of Stronger MYR are importers like FMCG (Fast Moving Consumer Goods) companies and, to lesser extent, auto companies. Still, broker warns interest rate cycle in Asia likely to turn up quicker than expected, following Australia's rate hike. Adds, "we do not expect any major positive measures in the coming Budget announcement this Friday, which has been pre-empted by various fiscal stimulus packages." KLCI last +0.1% at 1257.94, USD/MYR at 3.3820 vs 3.3700 Friday.
Dow Jones Newswires
October 18, 2009 21:03 ET (01:03 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc
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