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Ringgit to extend gains, KLCI to test key 1,700 level


  • Markets
  • Saturday, 12 Jan 2019

"Based on the interest rate futures, it appears that the market has been expecting no hike in the Federal Fund rate this year. Therefore, should the positive sentiment continues, the FBM KLCI might increase towards the resistance level of 1,700 points.  “However, technical indicators such as stochastic is lingering at overbought position. This signals the FBM KLCI is still fragile in the immediate terms," Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said.

"Based on the interest rate futures, it appears that the market has been expecting no hike in the Federal Fund rate this year. Therefore, should the positive sentiment continues, the FBM KLCI might increase towards the resistance level of 1,700 points. “However, technical indicators such as stochastic is lingering at overbought position. This signals the FBM KLCI is still fragile in the immediate terms," Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said.

KUALA LUMPUR: The ringgit is expected to extend its upward momentum next week on stronger buying interest following positive global sentiment, said a dealer. 

He said the continued increase in oil prices, coupled with expectations of the US Federal Reserve (Fed) putting on hold its rate tightening cycle in 2019, would improved risk appetite and boost demand.

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