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Showing posts with the label ringgit crisis

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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 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.
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Bank Negara foreign reserve down

BNM International Reserve The Malaysia's BNM International Reserve has dropped again from US $ 96.5 billion in July 31st to US$94.7 billion as at end-August 2015, down 2% or US$2 billion month-on-month to its lowest since July 2010.  The figure reflects a third straight decline on the BNM International Reserve but it was higher than it was in mid August 2015, when it was at just US$94.5 billion. It shows a US$200 million increase from the mid of August low. The central bank has issued a statement, stating that the reserves are sufficient to finance 7.4 months of retained imports and is 1.0 times short-term external debt.
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Ringgit crisis?

If you look at the last six months, you will see that the Ringgit (RM) has been the second worst performing currency in Asia, after the yen.  Ringgit (RM) crisis Two weeks ago, it breached the 3.4 level against the USD. On Dec 5th, it touched 3.4757 before closing at 3.4713. From the Ringgit's year high of 3.1463 recorded on August 27, the Ringgit has lost 10.3% of its value against the greenback. Last week alone there is a decline of 2.6%. While the yen's fall is due to the deliberate policy move by the Bank of Japan to devalue its currency, the ringgit is a victim of a convergence of several factors on both the external and domestic fronts.  The big question mark that remains: is the currency weakness a reflection of Malaysia's economic's fundamentals or is it a cyclical and temporary weakness? If you trust the analysts, then Ringgit is expected to continue the downtrend into next year.  Factors that drive the Ringgit down Drop in ...
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