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Market Daily Report: Bursa Malaysia Closes Higher On BNM’s OPR Decision, Wall Street Gains

KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
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China Wealth Fund Issues Record $29 Billion in Bonds as Market Stabilization Efforts Continue

Central Huijin Investment Ltd., a key unit of China's sovereign wealth fund, has set a record for its debt issuances, selling 207 billion yuan ($29 billion) in bonds this year. This marks the largest onshore credit market issuance since the firm first tapped into it in 2010. The latest bond sales include 9 billion yuan in three-year debt securities and 15 billion yuan in five-year bonds, according to sources.

Central Huijin has historically stepped in to buy equity during volatile periods to stabilize the stock market, and its holdings of trading assets surged by 388% in the first half of 2024. With China’s stock market rallying by 23% in recent months due to new stimulus measures, Huijin’s actions align with broader efforts to prop up the economy.

The People’s Bank of China (PBOC) has also introduced liquidity tools, such as share buybacks and equity swaps, to assist market recovery. State-led buying, as suggested by DBS Bank strategist Wei Liang Chang, could further boost risk sentiment and sustain the recovery.

The proceeds from Huijin’s bond sales are intended to optimize debt structure and replenish working capital, among other uses approved by regulators. The fund has benefited from low financing costs, with an average bond coupon of 2.2% this year, while China’s CSI 300 index has risen 15%.

This bond issuance comes amid China's efforts to stabilize financial markets, with the PBOC’s recent liquidity swap facility receiving over 200 billion yuan in applications to support stock purchases.

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