The Week That Was - capital market, Evergrande, taper, rate hikes,


SC chairman Datuk Syed Zaid Albar said the past two decades under CMP1 (2001-2010) and CMP2 (2010-2020) have laid strong foundations and brought an admirable level of growth and maturity to the Malaysian capital markets.

Five-year capital market masterplan

THE Securities Commission on Monday unveiled its third installment of the capital market masterplan 3 (CMP3) for 2021-2025.

Its chairman Datuk Syed Zaid Albar said the past two decades under CMP1 (2001-2010) and CMP2 (2010-2020) have laid strong foundations and brought an admirable level of growth and maturity to the Malaysian capital markets.

Building on these strengths, the CMP3, he said, was crafted to facilitate innovation and growth whilst promoting good governance.

The Malaysian capital market consisted of an equity market – Bursa Malaysia – that is home to over 900 listed companies, the third largest bond market in Asia, an Islamic capital market that is innovative and well-regarded globally, a derivatives market that is the global benchmark in crude palm oil price discovery and a unit trust industry that is one of the largest in the region.

Evergrande contagion fears

GROWING uncertainties over troubled Evergrande Group, the world’s most indebted property developer, sent shockwaves across the global economies earlier this week.

The developer’s massive US$300bil (RM1.3 trillion) liabilities could spark broader risk beyond China, after reports surfaced that it had missed interest payments on Monday.

China Evergrande building in HKChina Evergrande building in HK

An onshore arm of the distressed developer said yesterday it negotiated a yuan bond interest payment, reducing concerns over a potential disorderly debt resolution at Evergrande.

It would still need to restructure its other debts.

Some analysts say it could take weeks for investors to have any clarity about how the Evergrande situation would be resolved.

The company has previously denied it is heading towards bankruptcy and is pushing forward with ongoing projects.

Taper November and rate hikes

THE United States central bank on Wednesday said it will begin reducing its monthly bond purchases as soon as November, while half of its policymakers projected borrowing costs will need to rise in 2022.

With the Federal Reserve clearing the way to unwind its easy money policies, investors were left yesterday grappling about the impact on asset prices.

Fed buildingFed building

Analysts at TD Securities expect the central bank to reduce its asset purchases by US$15bil (RM63bil) a month, starting in November, helping push up yields and strengthen the dollar.

The US currency’s trajectory is important for investors as it impacts everything from commodity prices to corporate earnings.

Higher yields make dollar-denominated assets more attractive to income-seeking investors.

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