For Malaysian families watching their monthly budgets, there was a sliver of relief on Friday as the ringgit strengthened to a three-month high, trading at 4.4760 against the US dollar at 5 pm, up 0.43%. For the average consumer, this means imported goods—from cooking oil to electronics—could become slightly more affordable in the weeks ahead, offering a small cushion against rising living costs.
However, the stock market told a different story for those with retirement savings or investments. Bursa Malaysia finished 1% lower, with losers thumping gainers 629 to 347, while 362 counters remained unchanged. A total of 4.4 billion shares worth RM2.75 billion changed hands, reflecting a cautious mood among investors who appeared to be taking profits after recent gains.
Market movers and household names
Several well-known companies saw their share prices decline, directly affecting the portfolios of everyday Malaysians. Nestle dropped RM1.10 to RM130.40, Malaysian Pacific Industries fell 44 sen to RM27.40, PPB eased 36 sen to RM16.20, and Dutch Lady declined 28 sen to RM31.10. These moves hit consumers who hold shares in these household brands, many of whom rely on dividends for supplemental income.
On the brighter side, some counters posted gains. Hong Leong Industries increased 18 sen to RM9.40, Hextar Technologies rose 62 sen to RM13.60, Computer Forms climbed 41 sen to RM1.90, Malaysia Airports gained 21 sen to RM6.35, and Hong Leong advanced 18 sen to RM9.40. For investors in these stocks, the day brought some welcome returns.
Foreign capital returns after six-day outflow
In a development that could signal renewed confidence in Malaysia’s economic direction, foreign investors bought RM341 million worth of stocks on Friday, according to statistics from Bursa Malaysia. This marked a reversal after six consecutive days of net outflows. Meanwhile, local institutions and merchants sold equities worth RM159 million and RM182 million, respectively.
Analysts at UOB have identified several domestic triggers that could influence the ringgit’s trajectory, including the possibility of additional Overnight Policy Rate (OPR) increases. For Malaysian homeowners with variable-rate mortgages, any further rate hikes would mean higher monthly repayments, squeezing household budgets further.
Political developments and a public holiday
The composition of the Cabinet and the call to order of Parliament for the reintroduction of Budget 2023 are significant events to watch. The 10th Prime Minister, Datuk Seri Anwar Ibrahim, has declared Monday, November 28, 2022, to be a special public holiday. This political decision opens the door for pro-growth measures and domestic reforms, which could shape the economic landscape for ordinary Malaysians in the months ahead.
Across the region, the broader picture was mixed. The most extensive MSCI index of Asia-Pacific stocks outside Japan decreased by around 0.2%. In other parts of the region, the Nikkei 225 in Japan, the Hang Seng in Hong Kong, the Kospi in South Korea, and the Straits Times Index in Singapore all ended the day lower, suggesting that Malaysia’s market movements were part of a wider regional trend.
What to watch next
Looking ahead, all eyes will be on the parliamentary session for the reintroduction of Budget 2023 and the formation of the new Cabinet. These political decisions will determine the pace of domestic reforms and pro-growth measures that could affect everything from job creation to inflation. For Malaysian families, the ringgit’s strength against the US dollar will remain a key barometer of purchasing power, while any further OPR increases will directly impact household debt servicing costs. Investors will also monitor whether foreign buying continues, as sustained foreign interest could provide a floor for the local bourse.
