KUALA LUMPUR: The onshore financial markets in the country remain stable and orderly, post-14th general election, and continue to function in an effective manner, facilitating smooth intermediation activities among market participants.
The Financial Market Committee (FMC), established by Bank Negara Malaysia (BNM), said overall, investors’ sentiments and reactions have been positive.
Financial Markets Association of Malaysia president Dato’ Lee Kok Kwan said since the re-opening of the onshore Ringgit market on Monday, the Ringgit traded close to its last traded price prior to the general election, hovering around 3.95, after an initial opening of 3.97, signaling continued investors’ confidence of the new Malaysian Government.
The onshore FX market remains active, recording a daily average volume of above USD15 billion after the election.
Other key domestic markets including government bonds, corporate bonds and money markets remain supported by investors as evidenced by the strongest year-to-date bid-to-cover ratio of 3.4 times for the re-opening of the 7-year Malaysian Government Investment Issue (MGII).
Financial intermediation continues to be undisrupted backed by ample liquidity in the markets, FMS said in a statement today.
Malaysian economic fundamentals remain strong, reinforced by current account surplus, strong reserves position, low level of external indebtedness and a well-capitalised banking system.
Further, the FMC will continue to monitor these developments and work with financial market participants, which includes taking proactive measures, to address any further volatility that could emerge from the transition process to ensure orderly functioning of our financial markets.