KUALA LUMPUR: The ringgit closed lower against the US dollar today, weighed down by weak oil prices, dealer said.
At 6pm, the local note traded at 4.1770/1810 against the US dollar compared with Tuesday’s 4.1750/1800.
A dealer said the ringgit failed to take advantage of the sluggish greenback after oil prices slumped more than 4% on Tuesday, its biggest one-day fall for years.
Fears of a crude oil supply glut, amid slackening demand, the extension of a sell-off that took major crude benchmarks down more than 30% from an October peak were hanging over currency markets.
The ringgit was also weaker against major currencies.
It eased against the Singapore dollar to 3.0498/0543 from 3.0439/0486 on Tuesday and fell against the Japanese yen to 3.7172/7217 from 3.7141/7192.
The local unit weakened against the British pound to 5.2852/2915 from yesterday’s 5.2810/2890 and depreciated against the euro to 4.7568/7622 from 4.7491/7564. — Bernama
KUALA LUMPUR, Dec 19 ― The ringgit closed lower against the US dollar today weighed down by weak oil priced, dealer said. At 6pm, the local note traded at 4.1770/1810 against the US dollar compared with Tuesday’s 4.1750/1800….
HONG KONG, Dec 19 — Most markets were mixed in Asia today as investors moved cautiously after the previous day's sell-off, while focus is on a Federal Reserve policy decision with opinions split on whether or not it should hike interest rates…
At 9 am (0100 gmt), the ringgit was traded at 4.1770/1810 versus the greenback from Tuesday’s close 4.1750/1800. KUALA LUMPUR: The ringgit was lower against the US dollar early Wednesday on reduced demand for the local note amid weaker oil prices, a dealer said. At 9 am (0100 gmt), the ringgit was traded at 4.1770/1810 versus the greenback from Tuesday’s close 4.1750/1800. The dealer said oil prices continued dropping on concerns over future demand amid weakening global economic growth. “Doubts over the impact of planned production cuts led by theRead More
PETALING JAYA: The FBM KLCI is expected to end the year at circa 1,630 points with a slim chance of any window dressing, said Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew.
He does not expect local funds to do any window dressing, which would require a lot of money and may not be successful.
“If there is any window dressing at all, it would only happen in the last few days of the year, maybe one or two days before the year ends. It will be very last minute,” he told SunBiz.
Earlier in May, Pong said that the KLCI could end the year at 1,630 points if stock market earnings performance hold to a growth of about 6%.
“Today we are already at that level. If the earnings growth is worse, it will fall below 1,630 points. Looking at the way things are going, I believe it is likely to go below 1,630 points,” he added.
He said earnings growth are likely to fall below 6% based on third quarter data and growth since then, combined with the likelihood of a sharp drop in the next few days. Based on signals from the market, he expects earnings growth to come in around 4%.
Today, the FBM KLCI opened 13.15 points weaker at 1,628.47 and ended 6.31 points lower at 1,635.31 from yesterday’s close of 1,641.62.
For 2019, Pong said economic performance could be worse than 2018, depending on the government’s spending.
“If the government doesn’t spend because of poor oil prices or poor revenue from taxes or other reasons, things could spiral downwards and negatively affect corporate earnings. The government frequently takes the lead in spending and initiatives for infrastructure. If the government doesn’t spend for development expenditures, the momentum would not be there,” he said.
He said economic growth has to be at least 4% in order to be “healthy”, as a 3-4% growth would mean that there are parts of the economy that are stagnant or contracting.
Meanwhile, Areca Capital Sdn Bhd CEO Danny Wong declined to comment on window dressing activities at end-2018, saying that the short-term outlook is very sentiment-driven.
“Earnings for 2019 may not be as robust as 2018, especially in the second half of 2019,” he said.
However, he noted that Asia is still an engine of growth and maintained his positive outlook on economic growth and corporate earnings for next year.
“Earlier, I expected the third and fourth quarters this year to be better than the first and second quarters but it turned out to be worse. I still maintain my outlook but perhaps it has been delayed till 2019,” he said.
On foreign funds, which saw a large outflow so far this year, Wong expects foreign funds to return next year, for both equities and bonds, driven by 4-5% gross domestic product growth, the attractiveness of the ringgit and low valuations.
“Investors will watch out for countries with twin deficit but fortunately, Malaysia has a current account surplus, which will continue as the government has put on hold mega projects,” he said.
He said the rating agencies are still on hold on Malaysia due to the strong economy, with potential for a rating upgrade next year.
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