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Wednesday, September 30, 2020

Ringgit ‘very, very attractive’ now, says renowned investor (video)

Mark Mobius, chairman of Franklin Templeton Investments tells Bloomberg Business that on a price-parity basis, the ringgit is “very undervalued.”

Mark Mobius chairman of Franklin Templeton

Highly respected investor Mark Mobius, has said that Malaysia’s ringgit was looking extremely “attractive” at the moment, and as a consequence, was making the country’s stocks look equally attractive.

The executive chairman of Templeton Emerging Markets Group, who is busy snapping-up Malaysian stocks in the face of the ringgit having really “bombed out”, said this to Bloomberg Business in an interview in Bangkok, and added, “I think it’s so undervalued now.

He also said this had led towards making the currency extremely attractive to investors like him although he did not foresee the currency plunging any further.

“The ringgit is very, very attractive at this stage. I don’t see how it could go down much more. It could, but I think on a price-parity basis, it’s very undervalued.”

In the article, Bloomberg Business detailed how global funds have pulled 41.5 billion ringgit ($10 billion) from the country’s debt and equities this year amid a 16 per cent slide in the ringgit, adding: “That’s the biggest in Asia and already exceeding any annual loss since the regional financial crisis.”

It also attributed Malaysia’s vulnerability to the slump in Brent crude, China’s slowing economy, a broad selloff in developing nations and the political controversies involving Prime Minister Najib Razak.

Mobius, who has been involved in investing in global emerging markets for over 40 years, directs the Templeton research team, based in 18 global emerging markets offices, and manages emerging markets portfolios.

He has received numerous industry awards, including being named one of Bloomberg Markets Magazine’s “50 Most Influential People” in 2011 and “Emerging Markets Equity Manager of the Year 2001” by International Money Marketing, among of a host of others.

He has also written several books including “Trading with China,” “The Investor’s Guide to Emerging Markets,” and “Mobius on Emerging Markets.”

Mark Mobius, Templeton Emerging Markets Group chairman, says that the ringgit is “very, very attractive” right now, making Malaysian equities tempting. Bloomberg TV Malaysia’s Sophie Kamaruddin and Han Tan look at the recent correlation between the local currency and equity markets.

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