Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 17): The FBM KLCI fell 0.86 point to close at 1,626.77 points as a weaker ringgit sparked foreign selling of ringgit-denominated assets.

The ringgit depreciated to its weakest point against the US dollar today at 4.3975 as investors braced for higher US inflation and interest rates in anticipation of US President-elect Donald Trump's expansionary fiscal policies.

Such sentiment prompted Bank Negara Malaysia to issue a statement last Sunday that the central bank was "taking measures to reinforce existing rules" to prohibit offshore non-deliverable forward (NDF) ringgit trades.

Today, the KLCI cut losses after sliding to its intraday low of 1,620.94 points. Inter-Pacific Research Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that foreign investors sold RM1.66 billion worth of Malaysian shares in the past five days.

Pong said foreign selling could have contributed to the KLCI's decline. "The foreign selling is expected to continue and could probably reach a level of RM1.8 billion," he said.

He said the KLCI's drop and ringgit's depreciation could be due to Bank Negara's decision to prohibit ringgit NDF-related transactions.

Across Bursa Malaysia, 1.39 billion shares worth RM1.46 billion changed hands. There were 397 decliners versus 332 advancers

 

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