The Malaysian currency continues to weaken, but net exporting companies are enjoying it?
According to the latest exchange rate settlement, the Malaysian currency to the US dollar reached RM 1:4.79, continuing to fall below the new low level in 25 years. At one point, the exchange for the Singapore dollar also broke through RM 1:3.50, which is a record high. The most important factor is the heating up of global geopolitics, the release of more hawkish news by the Federal Reserve, and the fact that the Bank of China has no intention of interfering in the foreign exchange market. As a result, most listed companies have declined over the past few days. The sentiment is very pessimistic.
However, some sectors will continue to benefit from the depreciation of the Malaysian currency, such as the manufacturing, energy, and technology industries. Most companies in these sectors use the US dollar for trade settlement. Every time the Malaysian currency weakens, these companies' foreign exchange surpluses rise, so there is often a decline in turnover and breakthroughs in profit growth
The most typical example is semiconductor companies, especially those with a high percentage of European and American customers. Most of their sales are settled in US dollars. As long as demand slows down and gradually improves, then net profit in the second half of the year will have some room for growth, which will help re-stimulate the return of capital to the technology sector and boost investors' confidence
The bigger the crisis, the more opportunities will emerge. Follow me to take back control of the Malaysian stock market
However, some sectors will continue to benefit from the depreciation of the Malaysian currency, such as the manufacturing, energy, and technology industries. Most companies in these sectors use the US dollar for trade settlement. Every time the Malaysian currency weakens, these companies' foreign exchange surpluses rise, so there is often a decline in turnover and breakthroughs in profit growth
The most typical example is semiconductor companies, especially those with a high percentage of European and American customers. Most of their sales are settled in US dollars. As long as demand slows down and gradually improves, then net profit in the second half of the year will have some room for growth, which will help re-stimulate the return of capital to the technology sector and boost investors' confidence
The bigger the crisis, the more opportunities will emerge. Follow me to take back control of the Malaysian stock market
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