This week, the Thomson Reuters BPA Malaysia All Bond Index extended its gain from the previous week as it grew 0.20 per cent to close at 123.81 this week.
At the start of the week, trading was relatively quiet as the market was closed for Hari Raya Haji holidays on Monday and as market players remained on the sidelines ahead of the Monetary Policy Committee (MPC) meeting.
During the relatively quiet trading week, majority of the top 10 most active bonds were dominated by the short-term sovereign papers.
Looking at new issuances during the week, Cagamas Bhd issued one-year, three-year and five-year bonds with coupon rates of 3.28 per cent, 3.52 per cent and 3.73 per cent respectively. The bonds were rated AAA by both RAM Ratings and MARC.
On the same day, Pengurusan Air SPV Bhd issued a 10-year sukuk with a profit rate of 4.16 per cent. The issuance was rated AAA by RAM Ratings.
In the area of rating actions, MARC had on November 8 withdrawn its B rating on Titisan Modal (M) Sdn Bhd’s (TMSB) RM738.0 million Fixed Rate Serial Bonds (FRSB) at the request of the issuer.
Acqua SPV Bhd (ASPV), a wholly-owned subsidiary of Pengurusan Aset Air Bhd, has acquired all of TMSB’s outstanding FRSB under the debt facility. ASPV has approved and consented via a resolution to the removal of the rating requirements for the FRSB and conversion of the FRSB from publicly traded obligations to non-transferable and non-traded obligations.
Looking at other fixed-income related news,Bank Negara Malaysia held its final MPC meeting for the year on Friday, November 11. At the meeting, the central bank had decided to maintain the Overnight Policy Rate at three per cent.
In its monetary policy statement, the central bank cited that stronger domestic demand drove the improved domestic economy in the third quarter but stated that weaker external environment and the moderation of the global growth momentum in recent months could, however, impact the overall growth prospects.
The MPC assessed that the global economic outlook is expected to be weaker and international financial market conditions will remain highly uncertain and volatile going forward.
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