FTSE Bursa Malaysia KLCI lagging the Ringgit

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.

The Malaysian Reserve

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes