After peaking at a high of 1,792.35 on June 14 this year, the FTSE Bursa Malaysia KLCI (FBM KLCI) moderated over the past two weeks. The local bourse rose 5.96 points to close at 1,720.38 yesterday but failed to make gains despite the market-friendly Budget 2018 announced by the government recently.
Oanda Corp head of trading for Asia Pacific Stephen Innes said the equity market will play “catch up” to the stronger currency.
“For now, the OPEC meeting today is causing jitters — which may be holding back the larger oil and gas constituents on the bourse,” Innes said.
“The lower oil prices will not impact the ringgit too negatively, provided it does not plummet below US$50 (RM204) per barrel which is below Malaysia’s budget target of US$52 per barrel,” he said.
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