Ringgit and stock market – halting the rout

AS the saying goes ‘when China coughs, the rest of the world catches a flu.’ Following the shock devaluation of the yuan, the downtrend in the ringgit, oil price and KL stock market has become more pronounced and produced a variety of reactions.

“My view is that both the ringgit and KL stock market are undervalued,’’ said Chris Eng, head of research, Etiqa Insurance & Takaful, noting that the ringgit to US dollar had broken above his support level of RM4, and the KL stock market had gone below his support level of 1,670 points.