KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The Case for Sterling Bonds
With UK equities near record highs but lacking momentum, investors might consider a less stressful alternative: investment-grade sterling corporate bonds. While UK stocks attract private equity attention, broader performance lags global peers — only 16% growth since 2020 versus the S&P 500’s near double.
Why Bonds Make Sense Now
Yields on 10-year UK gilts sit at 4.5%, among the highest in developed markets.
Sterling corporate bonds offer 130bps premium over gilts — more than euro equivalents.
Recent deals, like ABP’s £300 million bond at 5.875%, were 5x oversubscribed.
Macro Considerations
Sterling strength has been supported by a weak dollar but may reverse if BOE rate cuts accelerate.
UK equities are stock-picking territory, with little broad index upside due to economic slack.
MoneyMaster Take — Key Insights:
Sterling corporate bonds provide better risk-adjusted returns vs. UK stocks.
FTSE 100 remains value-trap prone unless stock-specific catalysts emerge.
Yields + tax benefits + credit spread = fixed income upside.
Our Move:
Add sterling bonds to your income portfolio. Less volatility, more yield, and room for capital appreciation if rates drop.
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