The benchmark FTSE Bursa Malaysia KLCI rose 0.4 per cent to 1,678.08 points. The index fell 0.7 per cent last week.
Fading expectations of an interest rate increase and rising oil prices helped support investor sentiment in Malaysia despite a largely disappointing earnings season, analysts told the Nikkei Asian Review (NAR).
Malaysian companies continued to “sorely disappoint” in the second quarter with sector heavyweights banks, telecommunications and plantations accounting for the bulk of the disappointments, NAR quoted UOB Kay Hian analyst Vincent Khoo as saying.
“We think investors will price in expectations that corporate earnings have hit a bottom.”
He has cut KLCI earnings forecasts by 5.4 per cent and 5.3 per cent for 2016 and 2017, respectively, but noted that there could still be “modest” earnings recovery in the second half of the year.
The ringgit, tracking gains in other major regional currencies, climbed 0.3 per cent to 4.0683 against the US dollar, according to the NAR report.
Regional sentiment improved after data released Friday showed the US economy added 151,000 jobs in August, significantly lower than the 180,000 markets were expecting and trailing July’s upwardly revised 255,000 jobs. Unemployment rate meanwhile remained unchanged at 4.9 per cent in August.
The data is widely-seen as one of the last key consideration points for a rate-setting meeting this month, said the NAR report.
The Fed is scheduled to review policy on Sept 20 and 21.
Brent crude prices were up 4.2 per cent at USD48.78 per barrel on Monday. Global crude prices rose almost 11 per cent in August amid expectations of an agreement to curb output among major producers. OPEC will meet later this month in Algeria.
On the KLCI, 20 of the 30 constituents ended higher Monday, while two ended unchanged. Overall, gainers outnumbered losers 423 to 379, said the NAR report.
Foreign investors sold RM193.1 million in Malaysian shares last week, according to data from MIDF Amanah Investment Bank.
Axiata Group rose 2.4 per cent to RM5.58, leading gainers on the KLCI. SapuraKencana Petroleum ended 2 per cent higher at RM1.55. Genting fell 1.3 per cent to RM7.82.