RM could breach 4.30 against USD next week if crude slides further

Publish date: Sat, 12 Dec 2015, 03:25 AM

KUALA LUMPUR: Concerns over sustained global oil glut may push prices to continue their downwtrend next week, and this should put some stress on the ringgit to breach the 4.30 per dollar level again, a currency trader said.

"Concerns over the crude oil oversupply remains. Another fall in crude oil prices will prompt selling in emerging currencies of economies linked to crude exports, including the ringgit.

"Softer crude, coupled with the US interest rate hike drawing closer, would easily push the ringgit back to the weaker spot above 4.30 per US dollar next week," he told Bernama.

As of Friday, the global benchmark West Texas Intermediate crude shed 1.1 per cent to US$36.76 a barrel, its lowest settlement since 2009, while the internationally traded Brent was still hovering near its seven-year low of US$39.64 a barrel. The US Federal Open Market Committee meeting to finalise a rate hike is scheduled for Dec 15-16 and the ringgit is likely to experience cautious trading next week as the greenback may gain strength from the rate hike.

"Although the hike is already priced in, investors seem to feel safer holding on to the greenback in case the US Federal Reserve signals that it may hike (the interest rate) aggressively after next week's meeting," added another dealer.

For the week just-ended, the ringgit declined 685 pips against the US dollar to 4.2900/2950 from last Friday's 4.2215/2265.

The local unit weakened against the Singapore dollar to 3.0484/0543 from 3.0197/0254 last Friday, fell against the yen to 3.5199/5251 from 3.4369/4421 last week and depreciated against the British pound to 6.5049/5142 from 6.3762/3858 previously.

It also declined against the euro to 4.7048/7112 from 4.5879/4951 previously. --BERNAMA

Discussions
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calvintaneng

Post removed.Why?

2015-12-12 11:18

bearbear11

Calvin, with oil price on 7 years low, what counter can benefit from this? Thanks.

2015-12-12 11:21

calvintaneng

Bearbear11

Already posted last year

1) All Plastic Related Companies like Super Enterprize at Rm1.25

Ooops sorry. Super already taken private at Rm3.80 (Up 200%)
Cheap oil equals cheaper plastic cost.

2) Transport Companies that use cheaper petrol. I bought ILB. Sold already.

3) All Gloves & Rubber Related Companies. Crude Oil crash equals cheaper synthetic rubber. I called for a buy on Supermax at Rm1.60. Still holding Superman shares. Now price near Rm2.80 already.

4) All Others that will benefit directly or indirectly from Cheaper Oil & All Its By Products.

5) MPHBCAPITAL

Now Calvin turns even more bullish on MPHB CApital because it has 1,800 acres very prime lands near Pengerang's RAPID

Pengerang's RAPID WILL BE THE WORLD NUMBER ONE BENEFICIARY.

A MAMMOTH RM170 BILLIONS DOWNSTREAM PROJECT CONVERTING OIL INTO PLASTIC, FERTILIZER, TAR, BITUMEN, PETROL, DIESEL, TURPENTINE, WAX, CHEMICALS & MANY OTHER PRODUCTS WHICH IN TURN TURNS INTO A MILLION USEFUL BY PRODUCTS LIKE OUR CLOTHES< HANDBAGS< SHOES< LIFE JACKETS, CAR DASHBOARDS, PLASTIC CONTAINERS, HPDE WATER PIPES, ETC, ETC, ETC,

CRUDE OIL WILL HAMMER ALL OIL DRILLERS. SO MUST SELL ALL OIL & GAS COMPANIES AND SWITCH TO THOSE RELATED TO PENGERANG'S RAPID LIKE MPHBCAP

2015-12-12 11:36

bearbear11

Calvin, your suggestion is good.
Thanks

2015-12-12 12:22

calvintaneng

You are welcome Mr Bear

2015-12-12 12:25

Desa20201956

When the going gets tough
Calvin gets going.

2015-12-12 12:29

stockstealer

hi calvin,

can u comment on the DENKO counter. TQ in advance

2015-12-13 19:11

calvintaneng

stockstealer

Denko was first highlighted to me by the Remisier Mr Thomas from OSK Tmn Molek Branch, Johor. It was trading from 10 cents to 15 cents then.

As I was uncertain of its business I didn't buy any. It was a surprise to see Denko up 200% to over 40 cents later. And when I told Thomas about it he is no longer following.

A look at Denko shows it has over 50 cents NTA. So it has a Margin of safety. Also the crash of oil price will benefit Denko as it is involved with plastic

Denko is doing real business producing real goods. I think Denko is far better than other speculative stocks like XOX & Hibiscus

2015-12-13 19:55

stockstealer

TQ calvin,

Actually i will consider to buy denko.

My watchlist :

1) Denko
2) Pensoni
3) Ecoworld
4) Arank

Anyone feel free to give comment on my watchlist.

TQ in advance

2015-12-13 20:11

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