Blog: 05 Dec - FCPO bias to Down as Strong Ringgit

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2 comment(s). Last comment by InvestorsDoctor 2017-12-06 10:42

curious2

1,812 posts

Posted by curious2 > 2017-12-05 10:16 | Report Abuse

Good for USD borrowers planters eg FGV, IOI, etc?

InvestorsDoctor

21 posts

Posted by InvestorsDoctor > 2017-12-06 10:42 | Report Abuse

Hi Curious2, thanks for the question. In our opinion, borrowing in USD may reduce interest expenses, but company as a whole, strong ringgit may translate into many factors, for example, plantation house that expose into hedging on USD currency may inccur losses, this will offset the advantage of strong ringgit. Also, stronger ringgit with high inventory sentiment putting pressure on CPO price. Revenue maybe offset by both sides, not necessary planters will be profitable on current sentiment. If want to take advantage on CPO price movement, we recommend you to trade CPO Futures. Which give you the direct exposure into CPO price movement. You are welcome to monitor our daily post, which intraday trading plan is share for FREE currently.

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