Malaysian markets stable and orderly post-election

PETALING JAYA: Post-election, Malaysian onshore financial markets remain stable and orderly, and continue to function in an effective manner, facilitating smooth intermediation activities among market participants.

Overall, investors’ sentiments and reactions have been positive, said the Financial Markets Committee (FMC).

“Since the re-opening of the onshore ringgit market on Monday, the ringgit traded close to its last traded price prior to the gen- eral election, hovering around 3.95 (against the US dollar), after an initial opening of 3.97, signalling continued investor confidence in the new Malaysian Government,” the president of Financial Markets Association of Malaysia Datuk Lee Kok Kwan said in a statement.

The FMC said that the onshore FX market remains active, recording a daily average volume of above US$15bil after the election.

Other key domestic markets including gov- ernment bonds, corporate bonds and money markets remain supported by investors as evidenced by the strongest year-to-date bidto-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,” it said.

It added that the Malaysian economic fundamentals remain strong, reinforced by cur- rent account surplus, strong reserves position, low level of external indebtedness and a well-capitalised banking system.

The Financial Market Committee said that it 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.