KUALA LUMPUR: Banking stocks and the ringgit rose in early trade today after Wednesday's announcement on the appointment of Datuk Muhammad Ibrahim as the next Bank Negara governor.
The ringgit strengthened against the greenback at 3.9085 at 10.30am from 3.9150 recorded yesterday.
On Bursa Malaysia, meanwhile, the Finance Index also strengthened to 14,724.72 points at 10.30am from 14,690.87 points recorded yesterday.
Most banking stocks also performed well at early trade.
Banking stocks including Malaysia Building Society Bhd (MBSB), CIMB Group Holdings Bhd Hong Leong Bank Bhd, Malayan Banking Bhd (Maybank), AMMB Holdings Bhd, BIMB Holdings Bhd and RHB Capital Bhd rallied in the early trade.
MBSB’s share price increased 1.54 per cent at RM1.32, AMMB’s share price rose 1.33 per cent at RM4.51, BIMB’s share price was 1.29 per cent up at RM3.92 and RHBCap’s share price added 0.33 per cent to RM6.07.
CIMB was up 0.21 per cent at RM4.85, Hong Leong was up 0.15 per cent to RM13.50 and Maybank rose 0.11 per cent at RM8.96.
Muhammad Ibrahim was yesterday announced as the successor to outgoing Bank Negara Malaysia (BNM) Governor Tan Sri Zeti Akhtar Aziz, who had helmed the post for 16 years.
Muhammad was deputy governor and director of BNM, which he joined in 1984.
On the external front, meanwhile, emerging markets also reacted positively to news that the US Federal Reserve had reiterated its stand on a “gradual” increase of the US interest rates.
According to a Bloomberg report, the Fed announcement reignited this year’s rebound as traders bet continued weakness in the dollar will support demand for riskier assets.
“A rally in developing-nation securities gained momentum after the Fed’s meeting in March, when policy makers signaled that they would make two-interest rate increases this year, down from four forecast in December,” the report said.