Latest News in colour: Stock Market in red and Ringgit in the Green

Latest News: Stock market in red and Ringgit in the green

If you noticed the stock market movements, it has been doing well recently. It seems that the foreign investors are also back by looking at the numbers. HOWEVER, today, the stock market is in the red. As they say nothing can continue to climb up continuously and sometimes a breather is needed before the next new height. I hope this comes true.

As for the ringgit, I could see that it has finally shed that US$1 to RM4.70 level. I grew tired because it was always at the RM4.7XX level for some time. Today, it’s finally at RM4.66 and news are now painting a rosy picture for the ringgit to keep climbing too. Let’s hope these news would be right and it’s about time ringgit climb against a currency which has printed SO MUCH money and have SO HIGH budget deficits and still seen as of high value. Whatever…

Here’s the latest about the BURSA. Article in nst.com.my “Investment houses love Malaysia’s equity.”

Article in thestar.com.my Investors chose to pause for breath today and take profits following the recent gains while the ringgit rose to its highest in six months.

The ringgit hit a high of 4.6630 against the US dollar in early trade this morning, its highest level since the beginning of the year.

The local unit was last traded at 4.6672, up 0.43% against the greenback. It rose 0.07% against the Singapore dollar at 3.4764 and appreciated 0.06% against the euro at 5.0815.

Sellers outpaced gainers 639 to 532, while 513 counters were unchanged. About 4.6 billion shares, valued at RM3.73bil, changed hands. Do read here for the full report: Article in thestar.com.my

Buy Buy Buy now? Ha Ha Ha…

Just as businesses cannot suddenly be profitable overnight, it also meant that when we buy just remember that if it could suddenly move up, then it could suddenly drop as well. Especially if the fundamentals are not there. A good company meanwhile will continue to be a good company even if the market is bearish and thus it’s stock price decreased in price.

If we look at just the Price Earning Ratio and compare this to that largest economy’s stock market, ours really do look very attractive. However, always remember that if people perceive ringgit having the potential to lose 10 percent of its value, then the stock market is no longer effective because if they buy using a stronger currency and ringgit drops, it meant that what they bought also effectively dropped in value! This is why Ringgit’s perception must be consistently positive and then only the stock market will once again be the focus for many of these foreign investors.

Here’s one article about ringgit: theedgemalaysia.com “ringgit best performing ASIAN currency, not just ASEAN yeah)

Happy understanding.

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