NEW YORK, April 25 — The 10-year Treasury yield finally reached 3 per cent, a milestone that bond traders were eyeing for months to guide their next moves. Then that pesky stock market got in the way. After all the hoopla surrounding 10-year…
NEW YORK, April 25 — Wall Street dropped sharply yesterday as warnings by bellwether companies of higher costs reverberated as the benchmark US 10-year Treasury yield pierced the 3 per cent level for the first time in four years. Caterpillar, an…
KUALA LUMPUR: Bond Pricing Agency Malaysia (BPAM), which today launched the new Asean3 Government Bond Indices (A3GBI) in partnership with Indonesia Bond Pricing Agency and the Thai Bond Market Association, hopes to include the Philippines in the Asean index this year and invite more member countries to participate.
The A3GBI is designed to track the performance of local currency-denominated government bonds in ringgit, rupiah and baht. Setting up an investable and replicable index, which consists of the largest market-makers and liquid bonds from the government segment, is expected to provide greater visibility of Asean market behaviour.
Local currency bond markets in Asean have grown significantly and as at the end of 2017, the combined market size in dollar terms reached US$1.23 trillion (RM4.8 trillion). With this, the need for reliable and sophisticated data sets to measure and track market performance is becoming important. This environment formed a perfect setting for cooperation between the bond pricing providers in Asean. The A3GBI marks the first of such collaboration in Asean.
BPAM CEO Meor Amri Meor Ayob said the experience of building the A3GBI was a valuable learning opportunity for all three countries to develop their bond data and analytical capabilities.
The A3GBI also marks the first step in its ambition to build more cross-border products with its Asean neighbours.
A3GBI tracks daily movement to observe the direction of the market. A3GBI and sub-indices serve as a benchmark to measure performance. Over time, A3GBI reveals peaks and troughs to illustrate significance of market events.
The data may be used as a comparison with other data sets, and is useful for formulating trading strategies. Its constituents may allow for portfolio emulation for index funds of exchange traded funds.
BPAM chief business officer Shah Zain said it also plans to have more joint product development later, such as an Asean Corporate Bond Index and Asean Sukuk Index. He said the bond market has always been strong and is much stronger than the stock market.
“The bond market is fundamental to any economy, simply because the government issues bonds. It doesn’t issue shares. We chose government bonds because it is the way countries raises money. The prospects in the future is always there,” Shah told reporters after the A3GBI launch.
He said the biggest bond market in Asia is China, followed by Japan and Korea. Malaysia is ranked fourth in terms of percentage of gross domestic product.
“Index is a powerful fundamental tool to investors. Indexation is still under-developed in the region but advanced in the rest of the world,” he added.
KUALA LUMPUR (April 24): The Employees Provident Fund (EPF) said today it has invested RM4.86 billion in small- and medium-cap stocks on Bursa Malaysia through both its internal and external fund managers. It noted that the equities portfolio remains the largest contributor to the pension fund’s income at RM334.23 billion as at end December 2017, up 8% from RM309.48 billion in 2016. “As at end-2017, we have invested in 192 small- and medium-cap companies and we are committed to find more good companies to add to our existing portfolio,” EPFRead More
PETALING JAYA: The Employees Provident Fund (EPF) has invested a total of RM4.86 billion in small and medium capitalised stocks in Malaysia through both its internal and external fund managers.
The equities portfolio remains the largest contributor to the retirement fund's income, which recorded an 8% increase from RM309.48 billion in 2016 to RM334.23 billion as at end December 2017, it said in a statement.
EPF said this affirms reports of the country's positive growth, and as indicated by the performance of the stock market index, FTSE Bursa Malaysia KLCI (FBM KLCI) last Thursday, which reached an all-time high in the country's economic history.
“As our funds continue to grow, we are constantly open to new investment opportunities that can provide income that are sustainable and long term,” its CEO Datuk Shahril Ridza Ridzuan said.
“Our strong investment performance was largely driven by our investments in equities. We have been investing in stocks across various sectors, which include small and medium-cap companies,” he added.
As at end 2017, Shahril said EPF has invested in 192 small and medium-cap companies and it is committed to find more good companies to add to its existing portfolio.
Shahril added that EPF would constantly monitor and assess the performance of the country's small and medium-cap companies to see if they are suitable for investment and fit the retirement fund's risk return profile.
He said among the qualities that the EPF would look for in such companies include good governance, cost structure and sound business performance.
“The EPF has been doing co-investments with the small and medium-cap companies to help their growth as we see future potential in them, which should also help to spur economic growth and boost EPF's investment income,” he added.
In the recently tabled Annual Report 2017, EPF's total gross investment income as at Dec 31, 2017 was RM53.14 billion and total investment asset RM791.48 billion with return on investment (ROI) of 7.3%.
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KUALA LUMPUR (April 23): Analysts expect Bursa Malaysia Bhd’s earnings for the first quarter ended March 31, 2018 (1QFY18) to come within expectations when the stock market operator releases its results this Wednesday. RHB Research Institute Sdn Bhd has maintained its “buy” rating on Bursa Malaysia at RM7.58 and raised its target price by 5% to RM8.50 from RM8.13 previously as it believes that the upcoming 14th General Election (GE14) could add to trading activity in the short term. In a note today, RHB said securities average daily value (SADV)Read More
SINGAPORE, April 23 — South-east Asian stock markets were subdued on today, with Vietnam and Indonesia shares declining the most as investors exited equities after US bond yields rose to a multi-year peak. US 10-Year treasury yields hit 2.968 per…
SYDNEY, April 23 — Asian stocks started in muted fashion today as investors braced for a bevy of earnings from the world's largest corporations, while keeping a wary eye on US bond yields as they approached peaks that had triggered ructions in the…