KUALA LUMPUR: Bursa Malaysia plummeted again on Wednesday, with over 900 stocks in the red, as escalating tariff wars between the U.S. and China—two of the world's biggest economies—fueled concerns, stoked recession fears, and wiped out massive amounts in market value. At closing, the FBM KLCI fell for the sixth day, plunging 42.97 points, or 2.98%, to 1,400.59, its lowest in 21 months since July 2023. The market traded within a range of 52.36 points between an intra-day high of 1,438.99 and a low of 1,386.63 during the session. All indices ended the day in negative territory. The benchmark index has lost a whopping 125.93 points, or 8.3%, since the announcement of sweeping tariffs by US President Donald Trump on April 2. In the broader market, selling overwhelmed as 919 stocks plunged, while just 224 managed to rise, pushing market breadth down to a dismal 0.24. About 3.77 billion shares, valued at RM3.8bil, changed hands. Dealers expect market sentiment to remain cauti...
KUALA LUMPUR: Bank Negara Malaysia’s (BNM) international reserves fell
RM8.3bil to RM356.4bil (US$94.5bil) over the past two weeks until Aug
14.
BNM said on Thursday the international reserves as at Aug 14 was sufficient to finance 7.5 months of retained imports and it was 1.0 time the short-term external debt.
The reserves had declined by RM8.3bil from the RM364.7bil (US$96.7bil) as at July 31, 2015.
The reserves position then was sufficient to finance 7.6 months of retained imports and was 1.1 times the short-term external debt.
The above news was taken from Bank Negara reserves decline to RM356B from The Star. The bad news is the reserves are still dropping, but at slower rate; although the Malaysian Ringgit continue to dive until 4.19 against the US Dollar before gaining back and close at 4.17 for the weekends.
The slower rate of the reserves drop would most likely because there is no longer intervention by the Bank Negara against the Malaysian Ringgit devaluation towards the week. The sentiment and confidence towards the Malaysian Ringgit remain weak although I believe that the assets and equities sell off by foreign investor begin to slow down as well. So, maybe time for the Malaysian Ringgit to consolidate?
BNM said on Thursday the international reserves as at Aug 14 was sufficient to finance 7.5 months of retained imports and it was 1.0 time the short-term external debt.
The reserves had declined by RM8.3bil from the RM364.7bil (US$96.7bil) as at July 31, 2015.
The reserves position then was sufficient to finance 7.6 months of retained imports and was 1.1 times the short-term external debt.
The above news was taken from Bank Negara reserves decline to RM356B from The Star. The bad news is the reserves are still dropping, but at slower rate; although the Malaysian Ringgit continue to dive until 4.19 against the US Dollar before gaining back and close at 4.17 for the weekends.
The slower rate of the reserves drop would most likely because there is no longer intervention by the Bank Negara against the Malaysian Ringgit devaluation towards the week. The sentiment and confidence towards the Malaysian Ringgit remain weak although I believe that the assets and equities sell off by foreign investor begin to slow down as well. So, maybe time for the Malaysian Ringgit to consolidate?
See you at RM4.50.
ReplyDeleteIt's coming soon...it seems. Now already 4.30. We just need a little more bad news and RM might plunge further.
ReplyDeletegreat info... thanks for posting
ReplyDelete