Ringgit in tight range amid lower oil, stock sales

-A +A

KUALA LUMPUR (June 12): Malaysia’s ringgit stays in a narrow range even as oil prices fall and investors pull money out of local stocks.

* USD/MYR little changed at 4.1645 vs range of 4.1570-4.1652; support 4.1500, 4.1413, 4.1252; resistance 4.2028, 4.2437, 4.2535

* Global funds sold a net US$24.4 million of Malaysian equities Tuesday, halting six days of inflows

* Nation’s 10-year bond yield holds at 3.75% after climbing 4bps Tuesday

* Govt will auction RM4 billion of 2024 bonds on Thursday: central bank website

* Foreign ownership of Malaysian debt securities fell 2.3% m-o-m to RM175.9 billion in May, lowest since December 2011, central bank data showed Tuesday

* Global appetite for ringgit bonds was probably hurt by US-China trade tensions, as Indonesian debt also recorded outflows, Maybank Kim Eng Securities says in research note

** Still, the pace of outflows from Malaysian bonds slowed from April, when foreigners were spooked by FTSE Russell’s announcement that it may drop ringgit debt from its index

* Foreign-exchange reserves fell 0.5% to US$102.3 billion in the final two weeks of May, central bank data showed Tuesday

* Bursa Malaysia will raise participation of retail investors in the stock market to 30% from 25%, according to a report in The Star newspaper citing CEO Muhamad Umar Swift

* Malaysia plans to build a US$5 billion oil refinery in eastern Sarawak that will come online in 2022, according to state’s communications office

* Ruling People’s Justice Party said Wednesday it rejects any form of dirty politics and remains committed to developing the nation

** Statement was in response to a video on Facebook of a man accusing a govt minister of sodomy and calling for a corruption probe