The TR BPAM All Bond Index (Index) embarked on an uptrend since the start of the week starting from a reading of 133.58 on May 2, before reaching a high of 133.82 on May 8. However, the Index reversed its early gains and closed with a weekly loss of 0.06 per cent at a reading of 133.5 on Friday.
The Index fell on the last business day of the week following the rise in government securities yields of up to 16bps as a result of investors’ knee-jerk reaction to the central bank’s Monetary Policy Statement.
“Going forward, the degree of monetary accommodation may need to be adjusted ensure that the risks arising from the accumulation of these imbalances would not undermine the growth prospects of the Malaysian economy,” it said.
Earlier in the week, Malaysia’s external trade statistics were released for the month of March. Total trade for the month of March came in at RM120.5 billion, while the trade surplus was recorded at RM9.6 billion, a massive 96.8 per cent increase from the previous year.
Trading activities in the ringgit bond market picked up with the total trade volume of the top 10 most active bonds registering a 43.8 per cent jump to RM15.1 billion this week. As usual, sovereign names reigned the top 10 list with the seven-year and 10-year benchmark GII papers being the most actively traded bonds for the week.
On May 9, Bank Negara Malaysia announced the reopening of the 20-year benchmark MGS with an issuance size of RM2 billion. The tender will be open between May, 9 and 14, 2014.
On May 5, 2014, Public Bank Bhd issued a RM400 million Senior Medium Term Note (MTN) that matures in five years on May 3, 2019. The Senior MTN, which is rated AAA by RAM Ratings, bears a coupon rate of 4.2 per cent.
On May 9, 2014, Senai Desaru Expressway Bhd (SDEB) issued 10 series of Islamic MTNs (Restructured Sukuk), which were assigned a rating of BBB-IS by MARC. This single-class Islamic MTNs was issued under the SDEB RM1.89 billion Restructured Sukuk Programme, which will replace the Senior Islamic MTNs (IMTNs) Programme of up to RM1,890 million and the Junior IMTNs Programme of up to RM3,690 million. The Restructured Sukuk each has a maturity date falling within the 10-year period between December 31, 2038 and December 31, 2047. With a total outstanding amount of RM1.89 billion, the Restructured Sukuk has a set of multi-stepping profit rates, which range from 0.5 to 14 per cent over the tenure of the sukuk.