RM movement will be key deciding factor next week

We believe KLCI will track RM movement next week.  USD 1 to RM 3.70 is a critical level.  If RM weakness continue will prompt more hedging hence can be critical to the market in short term.

Looking at the current trend and coming events like Fed interest rate hike and 1MDB issue.  We see 60% to 70% chance RM will break 3.70 level triggering more weakness in the market.