Which Stock to Buy or Avoid with Stronger Ringgit

stock currency

The Ringgit, which has strengthened more than 6% year to date against US dollar, is poised to make further gain. The current strength has helped selected “ringgit-play” stocks to emerge.

However, “ringgit-play” stocks may only short term phenomenon. The stocks that gain the most with strong ringgit is the the companies that imports a lot of raw materials in foreign currency. The companies that depend on export may be turn out to be a loser.

The table below shows sectors and stocks that benefit from stronger ringgit.

Sector Stocks
Utilities Tenaga
Consumer Nestle
KFC Holdings
Proton Holdings
Telcos TM
Plantation Kuala Lumpur Kepong
Media Star Publications
Media Prima
Steel Malaysia Steel Works

The main sector that will become losers with strong ringgit are Electrical and Electronics Exporters and Rubber Glove makers.

Source : OSK Research & UOB KayHian

1 comment… add one
  • RM is getting stronger == AdSense earning is getting lower. 🙁


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