KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 billion.
Just the other day, I got the opportunity to talk to two economists, one from UOB and another from AmInvest and they were pretty happy that the Ringgit has stabilized.
The article written was published on The Edge Financial Daily on April 18, 2016 (Monday) but then, today, reality sets in as the oil price plunged after the failure in negotiation between the Saudis and Iran. Here's the reality: Ringgit is still very much tied with the movement of the oil and as long as the supply and demand of the oil failed to reach its equilibrium, the Ringgit's volatility should persist.
After some good run, the Ringgit fell the most in two weeks as Brent crude plunged after major oil producers failed to come up with an agreement to freeze output and address a supply glut.
The disappointment stemming from the weekend meeting in Doha risks reversing a rally in emerging Asia’s best-performing currency this year as a renewed decline in the commodity puts pressure on the government finances of oil-exporting Malaysia. Brent tumbled 2.7 percent to $41.92 a barrel as Iran appeared to be the main stumbling block to an agreement. Hopes a deal would be reached had spurred gains across world markets in recent days and driven Brent above $44 for the first time in four months.
The ringgit fell 0.6 percent to 3.9265 a dollar in Kuala Lumpur after being down as much as 1.5 percent earlier, according to prices from local banks compiled by Bloomberg. That pared its gain this year to 9.3 percent, trailing only Brazil’s real among emerging markets.
 |
| Ringgit |
After some good run, the Ringgit fell the most in two weeks as Brent crude plunged after major oil producers failed to come up with an agreement to freeze output and address a supply glut.
The disappointment stemming from the weekend meeting in Doha risks reversing a rally in emerging Asia’s best-performing currency this year as a renewed decline in the commodity puts pressure on the government finances of oil-exporting Malaysia. Brent tumbled 2.7 percent to $41.92 a barrel as Iran appeared to be the main stumbling block to an agreement. Hopes a deal would be reached had spurred gains across world markets in recent days and driven Brent above $44 for the first time in four months.
The ringgit fell 0.6 percent to 3.9265 a dollar in Kuala Lumpur after being down as much as 1.5 percent earlier, according to prices from local banks compiled by Bloomberg. That pared its gain this year to 9.3 percent, trailing only Brazil’s real among emerging markets.
Comments
Post a Comment