KUALA LUMPUR (Oct 28): Malaysian shares and the ringgit may take the cue from US interest rate expectation as investors closely watch  shares of FBM KLCI component Tenaga Nasional Bhd.

The US Federal Reserve's Federal Open Market Committee will meet this Tuesday and wednesday (November 1 and 2) to decide on the nation's interest rate direction. US rate hikes do not bode well for Asian markets in anticipation that investors will shift their funds into US dollar-denominated assets.
 
In Malaysia today, state-controlled utility Tenaga shares may be closely watched after the company said net profit rose to RM1.76 billion in the fourth quarter ended August 31, 2016 from RM820.9 million a year earlier. Full-year net profit was higher at RM7.37 billion versus RM6.12 billion.

Tenaga proposed a dividend of 22 sen a share for the quarter in review. The dividend brings the full-year payout to 32 sen a share.

Yesterday, the KLCI fell 4.89 points to 1,669.03 points. The ringgit weakened to 4.1855 against the US dollar.

US shares fell overnight. The Dow Jones Industrial Average dropped 0.16%, S&P 500 fell 0.3% while Nasdaq Composite was 0.65% lower.

Crude oil prices rose. Brent oil climbed 1% to US$50.47 a barrel while US oil was 1.1% higher at US$49.72.

Reuters reported that US stocks dipped in a choppy session after the latest round of earnings reports, as a decline in the consumer discretionary sector and interest-rate sensitive stocks outweighed gains in healthcare names.