The central bank said investor risk appetite improved following the announcement and subsequent signing of a phase one trade deal between the United States and China on Jan 15.
“As a result, the performance of the domestic financial markets had broadly improved.
“During the month, the ringgit appreciated by 1.9% against the US dollar and the 10-year Malaysia Government Securities yield declined by 11.6 basis points, driven by non-resident portfolio inflows to the domestic bond market,” said BNM in its Monthly Highlights – December 2019 report.
It said the improved investor risk appetite also supported the domestic equity market, which led the FBM KLCI to rise by 1.7% to 1,589 points as at end-December.
Meanwhile, BNM said banking institutions were well-positioned to withstand severe macroeconomic and financial shocks, with excess capital buffers of RM111 bil as at end-December 2019. – Jan 31, 2020, Bernama
