The currency appreciated 1.6 percent to 2.9865 per dollar as of 9:01 a.m. in Kuala Lumpur, the strongest level since Sept. 9, 2011. It was poised for the biggest one-day jump since June 2010, according to data compiled by Bloomberg. Three-month non- deliverable forwards rose 1.6 percent to 2.9992. The FTSE Bursa Malaysia KLCI Index rallied 6.3 percent.
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| Malaysian ringgit banknotes issued by Bank Negara Malaysia are arranged for a photograph in Kuala Lumpur. |
“It’s a relief rally with Najib’s election victory,” Wong
Chee Seng, a currency strategist in Kuala Lumpur at Ambank Group
said in a phone interview. “The market was a little too
negative going into the polls and that risk premium is being
removed.”
Barisan Nasional, also known as the National Front, won 133 of the 222 parliamentary seats, according to the Election Commission. That’s two seats less than it had heading into the poll and its narrowest victory since Malaysia won independence from Britain in 1957.
As of 4 a.m. local time, opposition leader Anwar Ibrahim hadn’t conceded defeat and said he planned to contest some results after highlighting electoral irregularities. The 65- year-old former finance minister contested the election, vowing to fight corruption and cronyism, abolish affirmative-action policies and cut living costs.
“We’re going to buy some stocks today, since that uncertainty has now been removed,” Andrew Mattock, a Singapore- based fund manager at Henderson Global Investors. Stock valuations are “quite cheap” as the market trailed regional peers before the elections, he said.
(Source: Bloomberg)
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