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Bloomberg
The ringgit jumped, making the currency the best performer in Asia, following the appointment of Anwar Ibrahim as Malaysia’s new prime minister.
The ringgit rose by as much as 0.9% against the dollar to 4.4542, its strongest level since mid-August. The currency had surged by 1.8% after Anwar’s appointment on Thursday, the largest single-day gain since March 2016.
Meanwhile, the stock benchmark index declined as much as 1.3% on profit-taking after the market added close to $19 billion in value — the largest in a single day since March 2020..
Analysts said the political risk premium on Malaysian equities remained given that the “unity government†model is unchartered territory and Anwar still has to test lawmakers’ support for his leadership with a confidence vote on December 19.
“Until the country attains reasonable political stability, the KLCI index would likely be commanding ‘sub-optimal’ valuation,†Vincent Khoo, head of research at UOB Kay Hian, wrote in a note.