Malaysian bonds are facing increased vulnerability to outflows as local yields rise alongside US Treasuries , following Donald Trump’s election win. Analysts suggest this trend could continue, particularly given the sharp ringgit depreciation against a strengthening dollar. Malaysian bonds saw net outflows of RM11.2 billion (US$2.6 billion) last month — the largest since March 2020 — according to Bank Negara Malaysia (BNM) data. This outflow, coupled with a sell-off in US Treasuries and a weakening ringgit, is pressuring yields higher. Notably, the 90-day correlation between Malaysian bonds and the ringgit has risen to 0.63, signaling that as the ringgit weakens, bond yields tend to rise. “The election outcome suggests continued dollar strength ,” said Philip McNicholas, Asia sovereign strategist at Robeco Group in Singapore. “With Treasury yields steepening, there’s a risk of further foreign withdrawal from emerging-market (EM) assets , especially Malaysia’s lower-yielding bonds.”
KUALA LUMPUR, Oct 25 (Bernama) -- Bursa Malaysia extended its losing streak for the fifth consecutive day on Friday as investors remained cautious and refrained from making significant market moves, said an analyst
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.93 points, or 0.85 per cent, to 1,618.30 from Thursday’s close of 1,632.23.
The benchmark index opened 0.79 of-a-point firmer at 1,633.02 and fluctuated between 1,617.60 and 1,635.28 throughout the day.
Market breadth was negative, with decliners trouncing advancers 656 to 354, while 577 counters were unchanged, 915 untraded, and 31 suspended.
Turnover declined to 2.47 billion units valued at RM2.14 billion versus 2.64 billion units valued at RM2.28 billion yesterday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said sentiment on the local bourse remained subdued with trading volumes below average as investors await fresh market catalysts.
"However, the benchmark index is nearing its oversold territory, suggesting a potential rebound shortly.
"This trading pattern may extend into next week, with expectations of sideways movement and a slight upward trend within the 1,615 to 1,630 range," he told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan noted that today's muted market trading aligned with previous trends, as election weeks — particularly in developed markets, often result in subdued trading activity.
"Investors are adopting a wait-and-see approach ahead of Japan's upcoming election this Sunday," he said.
Within the FBM KLCI, Mohd Sedek noted that utility and oil and gas stocks led the decliners, while the plantation sector recorded notable gains among Bursa Malaysia’s indices.
Among the heavyweights, Maybank trimmed four sen to RM10.54, Public Bank sank 11 sen to RM4.41 and CIMB Group eased one sen to RM8.12.
However, Tenaga Nasional gained two sen to RM14.38 and IHH Healthcare rose nine sen to RM7.50.
As for active counters, Ingenieur Gudang and Permaju Industries inched down half-a-sen to five sen and three sen, respectively, YTL Power International dropped 22 sen to RM3, YTL Corp shed 16 sen to RM1.97, and Focus Dynamics was flat at 2.5 sen.
On the index board, the FBM Emas Index dwindled 79.08 points to 12,220.62, the FBM 70 Index shaved 33.64 points to 17,714.67, the FBMT 100 Index dived 79.68 points to 11,921.94, the FBM Emas Shariah Index slipped 44.56 points to 12,199.98, and the FBM ACE Index shed 9.93 points to 5,101.01.
By sector, the Financial Services Index declined 145.54 points to 19,262.03, the Energy Index was 12.50 points lower at 846.53, and the Industrial Products and Services Index edged down 0.10 of-a-point to 175.72, but the Plantation Index expanded 19.47 points to 7,299.58.
The Main Market volume dipped to 1.41 billion units worth RM1.92 billion from Thursday's 1.65 billion units worth RM2.07 billion.
Warrants turnover expanded to 674.42 million units valued at RM94.25 million from 669.84 million units valued at RM97.08 million previously.
The ACE Market volume increased to 385.05 million units worth RM125.46 million versus 329.30 million units worth RM113.53 million yesterday.
Consumer products and services counters accounted for 267.43 million shares traded on the Main Market, industrial products and services (345.86 million), construction (83.55 million), technology (154.17 million), SPAC (nil), financial services (75.86 million), property (164.53 million), plantation (73.20 million), REITs (11.41 million), closed/fund (150,100), energy (52.33 million), healthcare (49.40 million), telecommunications and media (26.11 million), transportation and logistics (29.44 million), utilities (81.56 million), and business trusts (37,200).
Source: Bernama
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