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In November, foreign outflows from the local bond market extended for the third consecutive month, albeit at a slower pace (RM1.0 billion; October: RM6.3 billion). Consequently, cumulative foreign flows YTD fell deeper into negative territory to RM8.9 billion. It is important to note, though, that the outflow was mainly attributed to redemptions of short-term government …

Local govvies mostly rallied, ringgit ended higher in November Read More »

In September, heavy selling pressure amid the global bond rout pushed local government bond yields higher across all maturities. Global financial markets were rattled by stubbornly high inflation, which spurred market expectation of more aggressive monetary tightening ahead after being flagged by major central banks. Because of the selloff, yields of Malaysian Government Securities (MGS) …

Negative foreign flows with Malaysia bond selloff Read More »

In October, foreign investors net sold RM6.3 billion worth of local bonds by trimming their holdings to RM248.7 billion or equivalent to 13.3% (September: 13.7%) of total outstanding bonds. It was the second consecutive month of net foreign selling, though considerably larger compared with September’s RM439.0 million. As a result, cumulative foreign flows YTD dipped …

Accelerated foreign outflows from bond market due in part to weak ringgit Read More »

After two consecutive months of outflows, the local bond market recorded net foreign inflows as investors returned to emerging markets amid easing inflationary fears. In August, the local bond market logged net foreign inflows of RM5.6 billion (July: -RM3.5 billion). All segments registered net foreign inflows. Malaysian Government Securities (MGS) led with RM3.5 billion (July: …

Net foreign inflows in August amid easing of inflation fears Read More »

Today, Bank Negara Malaysia (BNM) announced its Monetary Policy Committee’s (MPC) decision to increase the overnight policy rate (OPR) by 25 basis points to 2.50%. The hike, the third in as many MPC meetings, further rolls back part of the monetary support implemented during the worst of the COVID-19 crisis. After the pandemic emerged in …

MARC Ratings upgrades 2022 GDP growth forecast to 6.5% despite consecutive OPR hikes Read More »

Posted Date: August 25, 2022 Local govvies mostly rallied in July, reflecting the movements in major government bond markets. Major government bond yields were lifted by stronger haven demand as concerns about a recession escalated after a recent stream of economic data, from the US to Europe, flashed signs of a slowing global economy. On …

BNM to continue on a monetary tightening path amid foreign bond outflows, rising inflation risks and weakened ringgit Read More »

Local govvies mostly rallied in July, reflecting the movements in major government bond markets. Major government bond yields were lifted by stronger haven demand as concerns about a recession escalated after a recent stream of economic data, from the US to Europe, flashed signs of a slowing global economy. On the local front, encouraging government …

BNM to continue on a monetary tightening path amid foreign bond outflows, rising inflation risks and weakened ringgit Read More »

We opine that Malaysia’s real gross domestic product (GDP) growth will likely pick up strongly by 8.5% y-o-y in 2Q2022, compared with the 5.0% recorded in 1Q2022. Our upbeat assessment is premised on the ongoing strength in private consumption growth, as suggested by high-frequency indicators despite a substantial uptick in imports. Private consumption will remain …

2Q2022 GDP: Growth currently consumption-driven, but will recede Read More »

Posted Date: August 2, 2022 Foreign investors decreased their local bond holdings in June amid the aggressive rate hikes of 75 bps by the US Federal Reserve (Fed) and global risk-off sentiment. June recorded the highest foreign outflows to date, amounting to RM4.1 billion. Consequently, total foreign holdings shrank further to RM253.3 billion (May: RM257.5 …

Foreign investors reduce local bond holdings, struck by the Fed’s aggressive rate hikes and global risk-off sentiment Read More »