KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
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.
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| 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.
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