• KLCI Continues to Rally This Week
• MYR to fluctuate in the range of 4.1770 and 4.1950 against the USD

Global Highlights

US dollar – The US Dollar Index gained by 0.10% to 95.800. The Philadelphia Fed Manufacturing Index, the barometer for general activity, new orders and shipment in the US, fell to 16 in February 2022 from 23.2 in January and missing market expectations of 20.

US equities – The equity market declined, where the Dow Jones Industrial Average went down by 1.78% to 34,312, the Nasdaq dropped by 2.88% to 13,717 and the S&P 500 shed 2.12% to 4,380. The UST 10y slid 0.52 bps to 2.038.

Euro – The euro closed 0.12% stronger at 1.137. European Central Bank’s (ECB) Francois Villeroy de Galhau, the governor of France’s central bank, commented during an interview that the asset purchase programme could end by the third quarter this year.

British pound – The pound rose 0.35% to 1.359.

Japanese yen – The yen shed 0.50% to 114.94. Exports for Japan rose by 9.6% y/y in January 2022, below of market consensus of 16.5% and after a 17.5% growth in December. This reflected the sudden spike in cases related to Omicron and persistent supply chain issues.

Chinese yuan – The yuan was stronger by 0.02% to 6.338.

Korean won – The won firmed 0.04% to 1,197.13.

Australian dollar – The Aussie edged up 0.60% to 0.720. Australia’s (seasonally-adjusted) unemployment rate remained at 4.2% in January 2022, unchanged from a month earlier. The latest reading was in line with market estimates while remaining at the lowest level since August 2008 as Covid-19 lockdowns were lifted.

Commodities Highlights

Crude oil – The WTI closed lower at US$91.76 per barrel, and Brent was also lower at US$92.97 per barrel.

Gold - Gold continued its rally, gaining by 0.87% to US$1,870/oz.

Malaysia Highlights

Malaysian Ringgit – The local currency slid by 0.04% to 4.185.

KLSE – The FBM KLCI continued to rally this week, increasing by 0.11% to 1,605.

Fixed Income – The MGS yields were lower for all tenors, including the 3-year which was down to 2.788%, 5-year to 3.305%, 7-year down to 3.580%, and the 10-year down to 3.665%.

Rates – The IRS yields for the 3Y was lower at 2.905%, 5Y down to 3.183%, 7Y up by 2.45bps to 3.400%, and 10Y increased by 1.0bps to 3.595%. KLIBOR remained at 1.970%.

Against major currencies – The ringgit was lower against the EUR, CNY, and THB. The currency was higher against most currencies including the GBP, AUD, JPY, SGD, IDR, PHP and VND.

Ringgit Outlook for the Day

We expect the MYR to trade between our support level of 4.1730 and 4.1770 while our resistance is pinned at 4.1950 and 4.1990.

Source: AmInvest Research - 18 Feb 2022