Weaker trad­ing likely

The Sun (Malaysia) - - MEDIA & MARKETING -

BURSA Malaysia will likely trade lower this week, mainly due to the weak­en­ing ring­git amid height­ened spec­u­la­tion of an in­ter­est rate in­crease by the US Fed­eral Re­serve (Fed) in De­cem­ber.

Af­fin Hwang In­vest­ment Bank vice-pres­i­dent/head of re­tail re­search Datuk Dr Nazri Khan Adam Khan said this week will be tough for the lo­cal bourse.

Fac­tors that will pres­sure Bursa Malaysia in­clude the weaker ring­git and lower com­mod­ity prices. “Fur­ther­more, Fed chair Janet Yellen’s re­marks have strength­ened the pos­si­bil­ity of an in­ter­est rate hike as soon as next month. This will pull ‘hot money’ out of ring­git bonds into US dol­lar bonds, he said.

How­ever, Nazri Khan re­it­er­ated that this is only spec­u­la­tive money. “The real in­flow of for­eign funds will come in next year as a re­sult of Prime Min­is­ter Datuk Seri Na­jib Abdul Razak’s visit to Beijing ear­lier this month. We be­lieve this will neu­tralise the ring­git in the near term.” – Ber­nama

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