KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
The People's Bank of China (PBOC) has ramped up its net purchases of sovereign bonds, acquiring a total of 200 billion yuan ($28.5 billion) from dealers in September. This figure surpasses the amount of bonds bought in the previous month and highlights the central bank's commitment to maintaining adequate liquidity in the banking system and reinforcing counter-cyclical monetary policy adjustments.
While the PBOC did not specify the tenors of the bonds purchased or the timing of these operations, it has indicated a shift in strategy. Last month, the central bank bought short-tenor government bonds while selling longer-tenor notes, a move aimed at managing liquidity and stabilizing the financial environment.
Recent market conditions have been tumultuous, marked by a flurry of stimulus announcements and reports of special sovereign bond issuance, which temporarily halted the bond-buying frenzy. The yield on the benchmark bond surged to 2.26%, the highest level since mid-July, before easing off ahead of China's upcoming week-long holiday.
Concerns over a sluggish economy had previously driven the benchmark 10-year yield below 2% for the first time on record, prompting traders to remain vigilant regarding potential central bank interventions. This caution is heightened by the PBOC's awareness of how fluctuations in US Treasuries can impact the market, particularly following the collapse of Silicon Valley Bank earlier this year.
PBOC Governor Pan Gongsheng has emphasized that the central bank will continue to address "problematic acts" within the bond market. He has outlined a series of stimulus measures, including reductions in key interest rates, in an effort to achieve China's 5% growth target for the year.
The PBOC is adopting a more proactive approach to manage the bond market dynamics, transitioning from initial verbal warnings to direct actions. In July, the central bank revealed it had "hundreds of billions" of yuan of securities available through agreements with lenders, signaling its readiness to intervene as necessary.
As the PBOC continues to navigate the complexities of the bond market, its recent actions underline a strategic focus on ensuring stability and liquidity amid a challenging economic landscape.
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