Thursday 29 Feb 2024
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KUALA LUMPUR (April 24): Malaysian shares and the ringgit may today take cue from higher US government bond yields, which led to a stronger US dollar. Anticipation of Malaysia's 14th General Election (GE14) may also dictate market sentiment.

US government bond yields, which neared 3%, led to expectation of higher demand for US dollar-denominated assets. Such sentiment did not bode well for Asian markets. 

Reuters reported that the spike in crude oil prices has driven up both market expectations of future inflation and long-term bond yields. It was reported that the last time yields neared this number in 2013 it rocked risk appetite and sent stocks sliding.
At Bursa Malaysia yesterday, the FBM KLCI fell 7.39 points or 0.4% to close at 1,880.36 while the small-cap index dropped 252.72 points or 1.7% to 14,638.24. In currency markets, the ringgit was traded at 3.8977 against the US dollar.

Today, investors will continue to watch Malaysian markets against news on GE14, the polling day of which, falls on May 9, 2018. GE14 nomination day is on Saturday (April 28, 2018).

The spotlight today could be on the lists of GE14 candidates as investors look at market dynamics ahead of the polling day.



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