KUALA LUMPUR: The 4.2 per cent gross domestic products (GDP) growth in Malaysia's first quarter (Q1) of 2024 surpassed CIMB Treasury and Market Research's (CIMB Research) projections.
The research firm said the country's Q1 2024 GDP has outperformed the firm's expectations at 4.0 per cent and consensus at 3.9 per cent.
"The growth led by upward revisions in all sectors except manufacturing remained at 1.9 per cent year on year (yoy), marking the first quarter in a year that all sectors recorded expansions," it said in a note.
According to CIMB Research, Malaysian government securities and government investment issues pulled back slightly from recent gains after Malaysia reported stronger than expected growth in the first quarter of 2024.
The firm said this has led yields to rise by around one basis point across the curve.
"Over the week, the curve bull steepened by 2–7 bps, with the front-end seen adjusting lower by 6-7 bps, potentially amid an unwinding of hawkish bets after Bank Negara Malaysia's DG reassured the market that the overnight policy rate (OPR) will not be used as a tool to support the currency," it said.
Meanwhile, CIMB Research said after last week's US inflation and retail sales data, the Federal Open Market Committee minutes and a line-up of Fedspeak are expected to set the tone for the market this week.
On currency, it said the regional currencies largely weakened against the dollar as the CNH was seen trading lower as well.
"It was a positive weakness for the ringgit as the local note strengthened against the US dollar by 1.1 per cent, closing out the week at 4.6877 thanks to the overall lower US dollar last week," it added.