KUALA LUMPUR: Bursa Malaysia staged another steady rebound on Friday, lifted by banking stocks, to retrace some lost grounds recently especially the 3.17 per cent-loss on Wednesday.

Dealers said blue chips ended the first day of June on a firmer note, as local fund buying of banks’ shares helped shore up Bursa's key index for second day in a row.

The FBM KLCI gained 0.9 per cent or 15.76 points to close at 1,756.38 points, extending its recovery following a 21.34-point rise to 1,740.62 points on Thursday.

On Wednesday, the index fell 56.56 points to 1,719.28 points.

Market breadth also remained positive as advancers beat decliners on a ratio of 560-to-377 stocks, while 381 stocks flatlined.

Banking heavyweights charge was led by Malayan Banking Bhd, Public Bank Bhd and CIMB Group Holdings Bhd.

Mayybank perked 38 sen to RM10.04, Public Bank rose 14 sen to RM24 and CIMB added 20 sen to RM6.10.

Sin stocks like British American Tobacco (Malaysia) Bhd, which rose 58.0 sen, Heineken Malaysia Bhd (up 52 sen) and Carlsberg Brewery Malaysia Bhd (up 44 sen) were among the outperformers on Friday's close.

An analyst said investors continued to display trading confidence even as the government unveiled economic policies with each passing day.

 The new government was more clear and transparent in communicating on what it was working on, he added.

 “There were some fear in the offset when Pakatan Harapan took over, but given the amount of press conferences and media briefings that are taking place, it is clear that this government is more transparent in its policy makings,” he said.

 “There will always be uncertainties in the market, but for now, the investors do believe in Tun Dr Mahathir Mohamad's premiership as they should, given that he was prime minister for 22 years before this.”

 Dr Mahathir had earlier today reaffirmed that Malaysia would remain business-friendly towards all, without any bias, and even encouraged India to invest here during Prime Minister Narendra Modi’s recent visit.

 In a recent interview, Pelaburan MARA chief executive officer Datuk Nazim Rahman said Dr Mahathir’s reputation for being business-friendly and PH’s manifesto which stated that contracts or projects would go through an open tender system and to favour local players will continue to invoke investor confidence.

 “While we acknowledge that markets may ease off and turn increasingly volatile in the near term in light of these election results, we think market conditions over the mid to longer term will remain encouraging, underpinned by improving global growth and earnings,” he said.

Meanwhile, ringgit is set to bounce back in anticipation of foreign funds returning to emerging markets.

Bloomberg quoted AMP Capital Investors Ltd as saying that the dollar’s run was ending, and it was time to return to emerging market currencies after their two-month slump.

The ringgit, together with other Asian currencies such as the Indian rupee and Indonesian rupiah which all had been sold off, were favoured, said the US$142 billion asset manager.

The ringgit was traded slightly higher against the US dollar today, partly due to external uncertainties that led to weakness in emerging markets.

At 6pm, the local unit was quoted at 3.9770/9800 from 3.9780/9820 yesterday.