KUALA LUMPUR: Foreign funds turned net sellers as of Thursday with an outflow of RM44.1 million as compared to RM3.4 million inflows in the previous week.
The optimism of a trade deal after the United States (US) and China agreed to roll back tariffs on each other’s goods in phases waned a little bit after reports suggested that the plan has met opposition from some advisers to US President Donald Trump.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid as quoted in New Straits Times said traders were still unconvinced with the latest news although the possible rollback of previously imposed import tariff would mean both parties could be reaching a common ground that would resolve the trade conflicts.
However, he said Bank Negara Malaysia’s (BNM) decision to keep the overnight policy rate (OPR) at three per cent had increased the country’s attractiveness in terms of investment return as evidenced by the appreciating ringgit against the US dollar at about 125 to 150 basis points.
Going forward, he said investors would be monitoring closely the release of corporates’ third-quarter financial results.
At Friday’s close, the ringgit was quoted at 4.1310/1360 against the greenback from 4.1640/1670 the week before.
Source: News Straits Times