1,700 the new level of resistance for Bursa Malaysia

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI), for the first time since October 26, 2015, has reached 1,700 points in Monday's opening.

According to Phillip Capital's Head of Strategy Phua Lee Kerk, the main driving factors are the stabilization of global crude oil prices and the strengthening of the ringgit to RM4.07 against the US dollar Monday morning.

Besides that, he said other driving factors include the weaker than expected US jobs data and China Communist Party's economic plan to manage sustainable growth.

Phua said this may be the new psychological level encouraged by risk on investors.

"I believe that the market will be experiencing an upward momentum but in the process we will also experience profit taking along the way.

"It will not always be smooth sailing with an upward trend every day but the market will increase to a higher level compared to what we see today. The immediate resistance level is 1,720 points," he said.

Ringgit strengthens, expected to continue upward momentum this week

Meanwhile, the ringgit strengthened in early trade today as it opened at RM4.07 against US Dollar.

The positive performance of the local note was supported by fresh buying interest.

According to Phua, this was also due to the depreciation of US dollar following weaker than expected US jobs data and the increase in global crude oil prices.

He also said that the market was concerned on the possibility of an interest rate hike by the US Federal Reserve (The Fed) for a third time.

"Based on the current environment, the ringgit may reach RM3.80 against the US dollar by end of the month," said Phua.