Halister News

(Bloomberg) -- Ringgit trades near a one-week high after energy prices climbed to the strongest in over two years, burnishing sentiment towards Malaysian assets.

• USD/MYR little changed at 4.2335; touched 4.2280 Tuesday, lowest since Oct. 23
  • Support 4.2095, 4.1825, 4.1733; resistance 4.2440, 4.2535, 4.2594
  • Brent crude falls 0.4% after reaching $61.41 Tuesday, highest since July 2015
• MYR is the number 2 trade in Asia after KRW amid expectations for more fund inflows into the region as developed central banks such Bank of Canada adopt a dovish stance, says Stephen Innes, a senior currency trader at Oanda Corp.
  • “Malaysia’s budget, although a complete election- inspired one, remained fiscally prudent which looks good in foreign investors’ eyes and rising oil prices are great for the ringgit,” says Innes
• Pension fund EPF sees MYR’s weakness as a tactical opportunity and is of the view that the currency would strengthen on a long-term structural basis, according to CEO Shahril Ridza Ridzuan
• Weak ringgit is prompting Standard Life Aberdeen to look at interesting Malaysian stocks that have underperformed this year, says Hugh Young, head of Asia at the co.
• 10-year bond yield climbs 3bps to 3.95% after sinking 12bps Tuesday
  • Gains in the bond market were spurred by a rebound in U.S. Treasuries, according to Maybank Investment Bank
• ANZ recommends investors in Malaysian bonds to stay overweight cash and turn neutral on duration from underweight following a recent correction in the market, according to note Tuesday
• Fitch sees downside risk to govt’s optimistic revenue projections as its 2018 GDP growth forecast of 5.0%-5.5% assumes strong recent momentum will be maintained
• Nikkei Malaysia October manufacturing PMI 48.6 vs 49.9 September
• Political hurdles are imminent in Malaysia with a general election due by August 2018, HSBC economists including Joseph Incalcaterra wrote in note Tuesday
  • Opinion polls suggest that the ruling Barisan Nasional coalition may have lost some support over the years, but should nonetheless secure a majority of seats in the upcoming election
• Police probe on state investment co. 1MDB is still lacking evidence, MalaysiaKini news website reports citing AG Apandi Ali

To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui