Published on 13 February 2015
The year started on a healthy note, with
RM10.2 billion of government securities issued in January (+54.5%
m-o-m). The corporate debt (PDS) market, however, exhibited a more
moderate trend, with RM3.9 billion of issuance.
That said, we anticipate the PDS market to be boosted
by healthy corporate issuance in the coming months, especially since
the uncertainties tied to interest rates have now dissipated. The
impetus is expected to originate from the construction and financial
sectors, underscored by the construction of new toll roads that may
commence this year, coupled with financial institutions’ need to
strengthen their capital bases.
Notably, the foreign sell-off of Malaysian government
debt securities in the last 6 months is observed to have slowed in
December and its demand was seen to be supported by the increased
investment in GII. RAM opines that long-term investors will continue
investing in the Malaysian capital markets and the current spate of
sell-offs by foreign investors will gradually taper off in the coming
months.
The RAM Bond Market Monthly is a snapshot of
bond-market activities in Malaysia, released in the second week of each
month. Please click here for the full report.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.