Latest news with #RM4.34
The Star
14-05-2025
- Business
- The Star
Ringgit opens higher against US dollar as US-China trade tensions ease
KUALA LUMPUR: The ringgit opened higher against the US dollar today, as easing US-China trade tensions brought relief to the financial markets, reducing recession fears and boosting risk-on sentiment among the traders and investors, an analyst said. At 8.01 am, the local note appreciated to 4.3045/3245 versus the US dollar compared to Tuesday's close of 4.3185/3250. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US consumer price index (CPI) grew 2.3 per cent year-on-year in April, slightly below market expectations of 2.4 per cent, while core CPI sustained at 2.8 per cent. "The moderation in CPI also suggests that concerns over US tariff-induced inflation may take a backseat for now," he told Bernama. Mohd Afzanizam said the economic data also indicates that the US Federal Reserve (Fed) has the policy space to reduce the Fed Fund Rate going forward. Therefore, the Federal Open Market Committee meeting on June 17 and 18 will be crucial, as the Fed is set to publish its latest quarterly macroeconomic forecast, he added. "The latest National Federation of Independent Business Optimism Index, which reflect small business sentiment, declined 95.8 points in April, the fourth consecutive months of decline since January this year. "Hence, the case for lower interest rate is valid, as weak business sentiments would result in reduced capital spending and hiring appetite," he said. On ringgit, Mohd Afzanizam noted that the local note has depreciated by 2.8 per cent against the US dollar since May 5, as tariff shocks have become more palatable with the US and China agreeing to allow some concessions to further negotiate the trade deals. It was reported that the ringgit weakened against the greenback to as low as RM4.34 yesterday's morning, but recovered to RM4.3218 in the afternoon. "This suggests that support for the ringgit was quite evident, as the risk-on mode in the global equities market should benefit the emerging market currencies, including ringgit. "On that note, the US dollar-ringgit pair is expected to oscillate around RM4.32 to RM4.33 today," he said. At the opening, the ringgit traded mostly lower against a basket of major currencies. It was up against the Japanese yen at 2.9179/9319 from 2.9181/9227 at Tuesday's close, but fell vis-a-vis the euro to 4.8146/8370 from 4.7961/8033 and lower versus the British pound at 5.7258/7524 from 5.7056/7142 previously. However, the ringgit traded higher against its ASEAN peers. It was marginally higher versus the Singapore dollar to 3.3076/3235 from 3.3084/3137 at Tuesday's close and strengthened against the Indonesian rupiah to 258.8/260.2 from 259.7/260.2 previously. The ringgit also improved against the Thai baht to 12.9521/13.0229 from 12.9958/13.0240 at Tuesday's close and rose vis-a-vis the Philippine peso at 7.71/7.76 from 7.74/7.76 previously. - Bernama
New Straits Times
07-05-2025
- Business
- New Straits Times
SD Guthrie's Q1 net profit soars to RM567mil on strong upstream performance
KUALA LUMPUR: SD Guthrie Bhd's net profit more than doubled to RM567 million in the first quarter ended March 31, 2025 (Q1 2025) from RM211 million in Q1 2024 backed by robust performance of the upstream segment. Revenue for the period climbed 11 per cent year-on-year (YoY) to RM4.82 billion compared to RM4.34 billion a year ago. The upstream segment gained from higher YoY average realised crude palm oil (CPO) and palm kernel prices, as well as increased fresh fruit bunch (FFB) production. The group's realised CPO prices averaged RM4,576 per tonne, an increase of 18 per cent, while palm kernel prices jumped 72 per cent to RM3,342 per tonne. It noted that FFB production in the group's Indonesian operations rose 11 per cent, while production in Papua New Guinea and the Solomon Islands improved by 10 per cent, cushioning the seven per cent decline in the Malaysian operations. Meanwhile, the group's downstream arm SD Guthrie International (SDGI) logged a lower pre-tax profit of RM76 million in the quarter, down 37 per cent YoY. SDGI was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This was partially mitigated by better performance and higher profits from its Asia Pacific operations. SD Guthrie chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said the group will remain cautious over the short and medium term amid the uncertain operating environment due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions. "Despite this, I firmly believe the group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees," he said in a statement. Moving forward, the group remains focused and resilient in delivering its performance this year. CPO price is expected to soften in the near term mainly due to a rebound in palm oil production as a result of improved weather conditions. Additionally, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. "As the year progresses, we are cognisant of prevailing economic and geopolitical conditions that may require strategic shifts to keep the group on track for a strong 2025. "On a positive note, our industrial park growth pillar has attained a noteworthy milestone with the recent signing of a tripartite agreement for the development of the group's prime land in Bukit Pelandok, Negeri Sembilan, within the country's Malaysia Vision Valley 2.0 growth area," said group managing director Datuk Mohamad Helmy Othman Basha.
