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KUALA LUMPUR – The ringgit retracted from yesterday’s gains to open lower against the US dollar this morning, as investors continue to seek shelter in the safe-haven currency, a dealer said.
At 9.20am, the local currency fell to 4.3970/4005 against the greenback from yesterday’s close of 4.3945/3980.
Bank Islam chief economist Mohd Afzanizam Abdul Rashid said the ringgit would continue to linger at the current level, while fears over a further tightening by the United States Federal Reserve and the subsequent impact on the economy are expected to remain in the near future.
“Meanwhile, the global benchmark equities were higher as investors are seeing values starting to emerge as the riskier assets were beaten down due to the aggressive monetary tightening by the Fed,” he said.
Nonetheless, the ringgit traded higher against a basket of major currencies.
The local note appreciated against the British pound to 5.3894/3937 from yesterday’s close of 5.4035/4078, and rose versus the Singapore dollar to 3.1706/1734 from 3.1738/1768.
The ringgit also went up against the euro to 4.6217/6254 from 4.6441/6478 and strengthened vis-a-vis the Japanese yen to 3.2281/2309 from 3.2448/2477 previously.
Bursa Malaysia opened marginally higher today, tracking the rallies on Wall Street overnight as market consensus points toward a slowdown in inflation in the coming quarters, a dealer said.
At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.07 of-a-point to 1,457.95 from yesterday’s close of 1,457.88.
The benchmark index opened 3.25 points firmer at 1,461.13.
Market breadth was positive with gainers leading losers 164 to 113, while 235 counters were unchanged, 1,763 untraded, and 19 others suspended.
Turnover stood at 220.19 million units worth RM99.86 million.
In a note, Malacca Securities Sdn Bhd said investors were still weighing recession risks arising from the global inflation, and as such may adopt the “selling into strength” strategy.
It also said that the announcement on the removal of the ceiling price for chicken and eggs, effective July 2022, should offer some reprieve for the poultry sector.
“Nevertheless, we believe most of the previously bashed-down sectors should gain traction, at least for the near term,” it said.
The brokerage also added that investors may scoop up technology shares as buying interest may emerge following the Wall Street’s overnight rally.
Among the heavyweights, Maybank shed two sen to RM8.63, Public Bank slid one sen to RM4.46, and CIMB lost four sen to RM4.92, while Petronas Chemicals was unchanged at RM9.50 and IHH Healthcare added one sen to RM6.50.
Of the actives, Top Glove and Country Heights increased one sen to RM1.09 and 11.5 sen, respectively, while TWL Holdings remained at 7.5 sen, SFP Tech fell two sen to 67.5 sen and Dagang NeXchange eased one sen to 79 sen.
On the index board, FBM Emas Shariah Index strengthened 5.18 points to 10,572.73 and FBM 70 gained 32.04 points to 12,584.47, while FBM Emas Index weakened 6.31 points to 10,388.53, FBM ACE fell 2.44 points to 4,822.54 and FBMT 100 Index shrank 7.52 points to 10,123.78. – Bernama, June 22, 2022
Sector-wise, the Financial Services Index was lower by 38.29 points at 16,120.89 and the Plantation Index lost 11.59 points to 7,103.38, while the Industrial Products and Services Index was 0.25 of-a-point stronger at 186.61.