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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
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Weakened Ringgit

A lot of us Malaysians are probably upset with the depreciation of the Ringgit. 

Weakened Ringgit



The Ringgit has weakened to multi-year low and breached the previous low of RM3.73 to the USD and according to a lot of research, it is inching towards the pegged level of RM3.80/USD.

This morning, while I was driving to work, I heard from BFM on their discussion. Apparently, our foreign reserve exchange is stand at an estimate of around 100 billion USD. 

If you're like me, you'll probably feel the pinch as I'm earning in RM. To talk about travelling would be a pain in the ass now because I'll have to fork out more most of the time. I suspect gadgets like Apple products might see another increase if the drop in the currency continues. Even then, Zeti insist that the RM is still strong and it's only at this level due to negative sentiments. I'm not sure if I'm buying it but as Ringgit continues to weaken, perhaps it's time to look at who's the biggest winners and losers in it.

BIGGEST WINNERS

Reading from The Star Online, Hong Leong Investment Bank (HLIB) Research expects the gaming sector, rubber products and technology stocks to be the main beneficiaries of the weaker ringgit. 

Gaming - revenue from US operations

Rubber Products - most sales in USD while cost in Ringgit 

Sea Transportation - almost all revenue in USD while there is a small portion of costs in Ringgit

Tech – majority sales in USD, partly offset by raw material cost in USD, outweigh US loan.


BIGGEST LOSERS

Automotive - higher cost of imported materials & CKD costs 

Air Transportation - higher fuel cost

Power - higher coal cost & USD debt

Telco - US$ debt


Well, whether we like it or not, the weakened Ringgit is here, and maybe it's time to think of how you can put your weakened Ringgit to help you add value. Perhaps some investment in stocks? Or maybe property? Well, if nothing else, I might as well spend it, at least my consumption power is stronger at present. What say you?

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