WHILE relatively high dividend yields will continue to attract foreign inflows into Malaysia’s debt market in the medium term, the pace of buying by foreign investors will likely moderate in view of rising Covid-19-related downside risks. So, we expect to see foreign inflows to slow down in the coming months, particularly since the debt market has already enjoyed 12 consecutive months of foreign inflows up to April, ” the analyst tells StarBizWeek. Foreign funds extended their buying of Malaysian bonds, with inflows accelerating to RM6.4bil last month from RM5.9bil in March. “We still expect foreign inflows into the debt market to continue in the medium term. However, inflows will likely moderate in the near term amid elevated local Covid-19 cases and the added tightening of MCO 3.0 measures, ” Kenanga says.

Source: The Star May 28, 2021 23:48 UTC