Ringgit eyed on crude oil as Malaysian firms report earnings
07 Feb 2017, 07:46 am
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KUALA LUMPUR (Feb 7): Malaysian shares and the ringgit may take the cue from overnight crude oil losses as investors eye corporate earnings during the current financial-reporting season.

Crude oil prices, which fell close to 2% may direct the spotlight on shares of oil and gas support-service providers. The ringgit tracks crude oil prices as the commodity forms a crucial portion of the Malaysian economy.

The spotlight will also be on Malaysian companies' earnings for the October-to-December 2016 quarter. The current reporting season had started in January 2017 although most companies announce their financials in February.

Yesterday, the FBM KLCI rose 6.23 points to 1,691.24 points. The ringgit strengthened to 4.4265 against the US dollar.

In overnight US share trades, the Dow Jones Industrial Average dropped 19.04 points or 0.09% to 20,052.42 points while S&P 500 declined 4.86 points or 0.21% to 2,292.56 points. Nasdaq Composite was 3.21 points or 0.06% lower at 5,663.55 points.

In crude oil markets, Brent dropped US$1.09 or 1.9% to US$55.72 a barrel while US oil declined 82 cents or 1.5% to US$53.01. Reuters reported that oil fell on Monday as ample US supplies and excess speculative length outweighed OPEC output curbs and rising tensions between the US and Iran.

 

 

 

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