KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Chinese lenders are aggressively issuing Tier-2 and perpetual bonds to secure ultra-low funding rates, with yields hitting their lowest levels since records began in 2009.
🔹 Tier-2 Bonds: Avg. coupon at 2.35%
🔹 Perpetual Debt: Avg. coupon at 2.31%
“Banks are locking in cheap funding amid a drop in government bond yields. They don’t expect such low yields to sustain,” said Timothy Tan, Bloomberg Intelligence.
Capital bond issuance surged 23% QoQ to a record ¥638.7B (≈US$89B) in Q2 2025.
Context:
Relief for banks facing shrinking net interest margins and rising bad loans
Consolidation of smaller rural banks continues
Commercial banks' capital adequacy ratio stands at 15.28%, down from 15.74% in 2024
Outlook: Bond supply may taper in H2 as Q2 placements front-loaded funding needs.
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