Title: Ringgit Rally Fuels Foreign Bond Inflows: A Deep DiveThe Malaysian ringgit has experienced a substantial appreciation, driven by robust foreign investment in the domestic bond market. A surge in capital inflows, totaling RM5.5 billion in July alone, has propelled the ringgit's performance. This analysis delves into the underlying economic factors driving this trend, examining key indicators and assessing the outlook for sustained growth. While the current trajectory is promising, investors must remain cognizant of potential global economic headwinds.
Key Points:
Strong foreign inflows into Malaysian bonds
Ringgit's appreciation driven by multiple factors
Deep dive into economic indicators shaping USD/MYR
Assessment of Malaysia's economic fundamentals
Cautious outlook amid potential global challenges
Key Drivers of the Ringgit Rally:
Currency Appreciation: Investors are buying bonds unhedged, betting on further ringgit gains.
Strong Domestic Economy: Malaysia's economic robustness and expected interest rate stability bolster investor confidence.
Global Factors: Anticipated Federal Reserve rate cuts weakening the USD benefit the ringgit.
Economic Indicators Influencing USD/MYR:
Interest Rate Differentials: Higher local rates attract foreign capital, strengthening the ringgit.
Inflation Rates: Low inflation supports currency value.
T rade Balance: Surpluses strengthen the ringgit, reflecting Malaysia's export strength.
Economic Growth: Domestic consumption and government spending drive economic growth, enhancing the ringgit's appeal.
Political Stability: A stable political climate attracts investment, supporting the currency.
Global Economic Conditions: Global trends and geopolitical events affect investor risk appetite and currency flows.
Outlook:
Malaysia's diversified economy, fiscal prudence, and growing middle class underpin the ringgit's strength. Efforts to boost foreign direct investment and exports further support currency appreciation. However, global uncertainties, US monetary policy shifts, and geopolitical tensions could introduce volatility.
Malaysian
Aug12 - FCPO (1D) - Sideways Box, Imminent Test ~260x...Weakening momentum finally coming into effect. 🐻
First close below UTL-L1 since July, potentially find L2, which resides near S1: ~260x
Sideway box between 2600-2800 thus far, if S1 fails, look for next support zone, S2.
Major Levels to Watch: ⚠️
R2: 276x-8x
R1: 270x-2x
S1: ~260x
S2: ~250x
My latest mobile updates available on TeL egr am ;)
Happy Hunting! 🚀🚀
-JK- MyTradingSpace
D&O green tech - top 20 jewel series of malaysia stockstop 20 jewels frm a very popular local bank...
fundamental : I don't know...
technical : let's look at some price action...
D&O green tech has been in uptrend movement since 2012-2018...after reaching peak at RM1.00 in Oct 2018, it has been trading sideway with a lower-high formed at RM0.92, in early Jan 2020 this year...during “The Big Fall” in mid March this year, the strong support at RM0.49 still holds...the rebound come back to RM0.78... a possible bullish cypher pattern formation but need to hit RM0.865 as the C leg and moving back to kill zone ranging frm RM0.525 -0.565...again, it is too early to say...
current support : RM0.70-0.78
lower support : RM0.49-0.56
strong support : RM0.43-0.49
resistance : RM0.92-1.00
in overall, D&O is still trading in a sideway consolidation...
WARNING : this is juz a trading idea...trade at your own risk!
plz like and share...
2/6/2020. Bursa Malaysia. DSONIC-WA mahu mendaki selaju sonic?Berpotensi untuk short swing dan mid swing
Dari segi TA (menggunakan indikator sendiri)
- Candle masih dalam keadaan hijau untuk daily chart
- Entry 0.610
- CL 0.570
- TP1 0.670 , TP2 0.695
- RRR = 1:1.22 , 1:1.78
(Dibawah ialah candle bagi daily chart )
(jika mahu menggunakan indikator saya, private chate saya di Trading View)
2/6/2020. Bursa Malaysia. HTPADU berpotensi untuk kenaikan paduBerpotensi untuk short swing dan mid swing
Dari segi FA
- PE > ROE
- Market volatile kerana hanya mempunyai 101.23juta jumlah share
- Sektor teknologi (Digital services)
Dari segi TA (menggunakan indikator sendiri)
- Candle masih dalam keadaan hijau untuk daily chart
- Entry 1.060
- CL 1.030
- TP1 1.18 , TP2 1.22
- RRR = 1:2.75 , 1:3.75
(Dibawah ialah candle bagi daily chart)
Jika mahu menggunakan indikator saya, boleh private chat saya
The sky is clear.. good rally for uptrend?Hi traders,
Hoping everybody is just fine.
The battle of oil market is really hot now, the debate , news, politician, investors.. they'r talking more about oil. I'm foresee next week trade upwards market, due to a lot of mysterious traders, investor from the BIG guy...that's what rumors I heard.. they do not want the oil market crash, or not they will bankrupt.. That's all for today..
Have a nice weekends.
Crude Oil Palm Continues to Ride the downward Coaster. Hello dear Malaysian traders,
Hoping express that everyone is in good health.
The global supply chain is infected, by this pandemic Covid. Every body was asked to stay at home, the workers are stopping from work. And there is no logistics can be done. The crude oil palm demand is also falling.
The best is, continue Short / sell with strength of downward pattern.
If you find my analysis is useful and helping you out, please do like, follow, and comment.
The new journey fight has began. Hello Malaysian Traders,
Diharapkan semuanya sehat2 belaka.
This market watch foresee will have a new uptrend, after a long downtrend market. Now Mudajaya maybe have a good fortune in this few days ahead. Frorecast will go to zone price 0.330 - 0.335, if the resistance breaks it may be go to another resistance. If not happen, 0.25 is the best price to quit.
The economy is in deppression.The down trend predicted continue to slowing down due to OIl price crash, and the simulates of economy at this MCO are very weak. According to Prime Minister, the country losses about RM24 Billion a day. But the Perhatin Rakyat aid helping a little bit in this short time period economy.
Forecast the economy will be a sluggish economic growth. Due to a slow economy progression.
To Malaysian Traders, we can help the simulates of Malaysian economy with our trades and bring back the profits in our country. Together we help economy to grow back, develop where we can. .
This trade will continue to roller up. Hello dear Malaysian traders,
Hoping that everyone is in good health.
Due to Malaysian Government still continue to make things clear till 12 May, the government is looking forward and critically focus in health. The trade will bring a new shine for this company as long the pandemic still here. Nation wide are trying to fight with this.. and for sure we will win.
My previous analysis is beyond than expected, and one again congrats to all. This week we forecast that this trade will continue to the roof top, just stay tight.
All analysis is just for education purposes and not as an investment guide. Please contact with you broker or investment manager to make things clear.
If you find my article and analysis helps... Please do give a like, follow and comment if you have any trades idea.
Best regards, and good luck.
Malaysia - Still Waters Run Deep EWMAs Q2 2019 is underway, global financial markets have experienced a melt-up in assets prices, with some markets up over 20 percent year-to-date. However, despite the run in global asset prices, there is one country that has missed out on the rally, and that is Malaysia.
Malaysian equities (EWM) (INDEX:KLSE) have declined -3.77% in 2019, taking the mantle as the worst performing equity market this year so far. To further complicate matters, the yield on the Malaysian 10-year government bond has risen to 3.932% as of this post, up from 3.81% in March. Lastly, the Malaysian Ringgit (USDMYR) has weakened by 1.92% percent in April 2019, loosing 0.08% against the US Dollar for the year, and forecast to fall further.
Under-performance in Malaysian assets in recent trading sessions can be attributed to the fact that global investors are worried that Malaysian bonds may be removed from the FTSE Russel, a key global bond index for international investors. If this were to occur, Malaysian credit markets would see billions of dollars in outflows, in conjunction with a spike in yields, as investors flee the market en masse.
However, the under-performance of Malaysian assets in 2019 can be attributed to recent downgrades in Malaysian gross domestic product (“GDP”) by the International Monetary Fund (“IMF”). The IMF downgraded the country’s GDP to 4.5% for 2019, down from 4.7% as stated in their prior forecasts. Growth is expected to slow this year as uncertainty stemming from the US-China trade war is expected to put further pressure on Malaysian exports. Furthermore, on a micro level, the threat of elevated household debt among Malaysian households is also lurking in the background. With household debt-to-GDP levels hovering around 83% in 2018, some of the highest in South East Asia, there is worry that leveraged households who have taken large sums of debt for real estate investment and consumption may have difficulty servicing their existing debt. This is especially worrisome in the midst of a slowing economy. Thus, there is risk that elevated household debt could add further pressure to future economic growth, and threaten economic stability within the Malaysia, if it continues on its current trajectory.
As a result, due to these ongoing internal macroeconomic and financial headwinds, we are bearish on Malaysian assets and caution investors to tread lightly within this space.
Malaysia - Still Waters Run DeepAs Q2 2019 is underway, global financial markets have experienced a melt-up in assets prices, with some markets up over 20 percent year-to-date. However, despite the run in global asset prices, there is one country that has missed out on the rally, and that is Malaysia.
Malaysian equities ( EWM ) (INDEX:KLSE) have declined -3.77% in 2019, taking the mantle as the worst performing equity market this year so far. To further complicate matters, the yield on the Malaysian 10-year government bond has risen to 3.932% as of this post, up from 3.81% in March. Lastly, the Malaysian Ringgit (USDMYR) has weakened by 1.92% percent in April 2019, loosing 0.08% against the US Dollar for the year, and forecast to fall further.
Under-performance in Malaysian assets in recent trading sessions can be attributed to the fact that global investors are worried that Malaysian bonds may be removed from the FTSE Russel, a key global bond index for international investors. If this were to occur, Malaysian credit markets would see billions of dollars in outflows, in conjunction with a spike in yields, as investors flee the market en masse.
However, the under-performance of Malaysian assets in 2019 can be attributed to recent downgrades in Malaysian gross domestic product (“GDP”) by the International Monetary Fund (“IMF”). The IMF downgraded the country’s GDP to 4.5% for 2019, down from 4.7% as stated in their prior forecasts. Growth is expected to slow this year as uncertainty stemming from the US-China trade war is expected to put further pressure on Malaysian exports. Furthermore, on a micro level, the threat of elevated household debt among Malaysian households is also lurking in the background. With household debt-to-GDP levels hovering around 83% in 2018, some of the highest in South East Asia, there is worry that leveraged households who have taken large sums of debt for real estate investment and consumption may have difficulty servicing their existing debt. This is especially worrisome in the midst of a slowing economy. Thus, there is risk that elevated household debt could add further pressure to future economic growth, and threaten economic stability within the Malaysia, if it continues on its current trajectory.
As a result, due to these ongoing internal macroeconomic and financial headwinds, we are bearish on Malaysian assets and caution investors to tread lightly within this space.