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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec

China Tightens Control Over Bond Market Amid Economic Slowdown Concerns

  Chinese authorities are intensifying efforts to manage the world’s third-largest government bond market, implementing a series of interventions to cool a rally that has driven yields to record lows. The latest move saw regulators in Jiangxi province instruct rural banks not to settle recent government bond purchases, effectively forcing them to renege on their market obligations. Key Highlights: Regulatory Intervention: This unusual directive is part of a broader strategy by Chinese regulators to curb the bond market's surge, which had driven the benchmark 10-year yield to an all-time low of 2.12% earlier this month. The yield has since increased to around 2.22%. Market Risks: The interventions are aimed at mitigating the exposure of banks to interest-rate risks and preventing the formation of a bond bubble, which could threaten financial stability. The Chinese government is attempting to strike a balance between supporting the sluggish economy with low borrowing costs and avoi

Global funds pile up nearly a trillion yuan of China bank bonds

Foreign investors ramped up holdings of short-term bonds issued by Chinese banks to a fresh record, as attractive rates for swapping dollars continued to juice the returns available on such debt. Key Takeaways: Record Holdings : Overseas institutions’ outstanding holdings of Chinese negotiable certificates of deposits (NCDs) reached 972.6 billion yuan ($133.7 billion) in June, according to Shanghai Clearing House data. This made up 22.5% of their overall China bond holdings in the month. Shift in Investments : While global funds increased their holdings of NCDs, they cut their holdings of Chinese sovereign debt by 28.1 billion yuan in June, according to data from ChinaBond. Attractive Returns : Low yuan borrowing costs in the onshore market and cheap foreign-exchange hedging costs have driven the interest in NCDs. Yields on one-year NCDs from Chinese banks with 'AAA' credit ratings have fallen to just under 2%, but overseas buyers get an expected yield of about 6% due to favora