KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Hong Kong banks borrowed HK$4.79 billion ($617 million) from the Hong Kong Monetary Authority (HKMA) via the discount window on Monday, marking the highest short-term borrowing since December 2019. The increase in liquidity demand reflects rising borrowing costs and tighter Hong Kong dollar liquidity.
This surge in borrowing comes as the one-month Hong Kong Interbank Offered Rates (Hibor) climbed to its highest level in two months, fueled by demand for local assets amid a rally in Chinese stocks. Other contributing factors include soaring equity settlement demand, increasing margin financing activities, and ongoing silver bond subscriptions.
Ken Cheung, chief Asia FX strategist at Mizuho Bank, noted that the increased usage of the discount window mirrors tighter liquidity conditions and rising demand for Hong Kong dollar assets. The Hong Kong dollar has remained relatively stable, trading just below 7.77 per dollar, within its pegged range of 7.75 to 7.85 against the US dollar.
This uptick in borrowing highlights the pressures on liquidity as the market contends with rising borrowing costs and the ongoing surge in stock market activity.
Comments
Post a Comment