Bismillah [hidayahnet] Fw: Market report3: Asia Currency Moves - First Cut - Revaluation or devaluation?

[Islahonline]

Title: Research & Analytics Notification

----- Original Message ----- From: Zifri Baharudin Sent: Saturday, July 23, 2005 6:37 PM Subject: Market report3: Asia Currency Moves - First Cut - Revaluation or devaluation?   Assalamualaikum   For those interested to read the full report, pls email me by 30th July   Zifri [EMAIL PROTECTED]   China has shifted away from a US-dollar peg to a currency basket peg. We believe that the RMB’s 2% appreciation yesterday is a non-event – it is simply not big enough to change global dynamics. Malaysia’s shift to a managed float is more interesting.   • We expect the RMB to appreciate an additional 4-7% within the next 12 months. However, note that if the US dollar strengthens against other currencies in the basket, the RMB could easily end up depreciating against it.   • Malaysia should receive more attention. Firstly, higher oil prices have improved its terms of trade. Secondly, not having undertaken a large capex cycle like China, the economy is better placed to cope with a stronger currency.   • We expect investors to chase ringgit assets, in expectation of further currency appreciation. We believe the winners are Tenaga, Telekom, DiGi, Astro and Air Asia, and the losers are plantations and MISC.   • In China (outside of the much-discussed winners and losers), a contrarian view would be to buy textile exporters, as the change in currency regime may diffuse the trade dispute. Asia Currency Moves - First Cut - Revaluation or devaluation? July 22, 2005 Document Link (52 pages, 610KB)   -------------------------------------------------------------------------- All views expressed herein belong to the individuals concerned and do not in any way reflect the official views of Hidayahnet unless sanctioned or approved otherwise. If your mailbox clogged with mails from Hidayahnet, you may wish to get a daily digest of emails by logging-on to http://www.yahoogroups.com to change your mail delivery settings or email the moderators at [EMAIL PROTECTED] with the title "change to daily digest". SPONSORED LINKS Divine inspiration Islam YAHOO! GROUPS LINKS  Visit your group "hidayahnet" on the web.    To unsubscribe from this group, send an email to:  [EMAIL PROTECTED]    Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.