Little impact on ringgit seen from Najib's RM20b stockmarket boost

Kuala Lumpur

A PACKAGE of measures announced by Prime Minister Najib Razak on Monday to stabilise the flagging economy gave the stock market a boost as RM20 billion (S$6.54 billion) would be injected into government-linked fund manager ValueCap to purchase undervalued shares.

But the move was seen to be lacking in substance to halt the deterioration in the ringgit which has dropped to an 18-year low. Because the real problems impacting the economy and currency continue to be swept under the carpet, analysts do not expect significant investor buy-in or a reversal in sentiments.