KUALA LUMPUR, April 3 (Bernama) -- Bursa Malaysia closed marginally lower on Friday, as cautious sentiment persisted, with investors remaining on the sidelines amid ongoing conflicts in West Asia, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.80 points, or 0.16 per cent, to 1,695.50 from Thursday’s close of 1,698.30. The benchmark index opened 5.82 points higher at 1,704.12, and moved between 1,693.65 and 1,708.12 throughout the day. However, market breadth remained positive, with gainers outnumbering losers 634 to 415, while 521 counters were unchanged, 1,077 untraded and 10 suspended. Turnover improved to 3.38 billion units worth RM2.95 billion from yesterday’s 3.20 billion units worth RM3.50 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.
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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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