KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia’s benchmark index edged higher at the close as bargain hunting emerged following Monday’s sharp sell-off, although it narrowly failed to reclaim the 1,600 level, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 3.83 points, or 0.24 per cent, to 1,599.58 from Monday’s close of 1,595.75. The index opened 3.18 points lower at 1,592.57, marking its intraday low, and reached an intraday high of 1,602.83 in early trading. On the broader market, decliners outnumbered gainers 751 to 331, while 499 counters were unchanged, 1,259 untraded and 10 suspended. Turnover rose to 2.86 billion units worth RM2.42 billion against Monday’s 2.49 billion units worth RM2.38 billion.
My personal take on the Ringgit's weakness that have continued
And if you are not concern, then this chart should show you otherwise.
Malaysian Ringgit was the second worst currency performing in Asia, behind the Japanese yen, ever since Donald Trump's surprise victory in the presidential election in the United States.
Here are some of the things that have been said about the Ringgit.
1) The Ringgit has suffered more in general because of the higher percentage of foreign holding in the bond market.
2) Uncertainties over Trump's policy once he takes over has caused concern over emerging market and Ringgit.
3) Fundamentals have not change. The Ringgit is undervalued, but uncertainties are making it less attractive.
Honestly, it's difficult to tell if it's really just Trump that had caused the weakness in Ringgit. Remember that the oil price has slowly moved up to its current 40 to 50 USD per barrel from the 20 to 30ish range in February this year but the Malaysian Ringgit has not seen the same magnitude in movement.
So far, negative headlines have surrounded Ringgit and if you have traveled to countries like Indonesia, like myself, you'll feel depressed because the Indonesian Rupiah seems to be gaining more value than the Ringgit. (Sad but true)
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