Thursday 30 Nov 2023
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KUALA LUMPUR (April 10): Ringgit gains for a second day before a government report Wednesday forecast to show factory output accelerated in February. The Election Commission is set to announce the date of the next general election on Tuesday.

* USD/MYR drops 0.2% to 3.8640

** Support 3.8465, 3.8000, 3.7310; resistance 3.9007, 3.9290, 3.9313

* Industrial production +3.4% in Feb. y/y vs +3% in Jan.: Bloomberg survey

* USD/MYR will probably trade in a range of 3.86-3.92 over the next 3 months, with trade tensions between U.S. and China expected to persist, says Sean Yokota, head of Asia strategy at SEB in Singapore

** “Most people are pretty optimistic on the ringgit from a political point of view” amid expectations the ruling coalition will win the general election and maintain its policies

* RBC Capital Markets recommends investors short SGD/MYR as the ringgit tends to perform well in the run-up to elections, while Singapore’s central bank shouldn’t be in a hurry to join the global tightening cycle * Malaysia’s 10-year bond yield fell 1bp Monday to 3.95%

* Election Commission will hold a briefing at 11:30am local time to announce the dates for candidate nomination and general election

** Programs set out by the ruling Barisan Nasional coalition and opposition Pakatan Harapan are likely to boost consumption in near term: Moody’s Investors Service

* Foreign investors bought net RM328m of Malaysian stocks in week ended April 6, vs RM301.3m of outflows in prior week: MIDF Amanah Investment Bank

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