The Thomson Reuters BPAM All Bond Index posted a 0.10 per cent losses, ended the week at 138.80, compared to 138.94 last Friday. The losses were mainly contributed by the ringgit depreciation, which declined from 3.5615 last Friday to 3.6045 on Thursday. The currency depreciation was due to the bearish trend of crude oil prices following the US announcement that its stockpiles hit a record and International Energy Agency forecasted the oil supply growth in US will continue until 2020.
On the local front, the three-month Klibor eased to 3.79 per cent from 3.87 per cent seen on December 15 as the concern on the liquidity converage ratio of banking sector eased off following the circulation of new BNM rules.
On Thursday, BNM released the GDP data for 4Q14, which posted a 5.8 per cent growth compared to a 5.1 per cent a year ago and the country’s overall GDP growth for 2014 is registered at six per cent. BNM governor Tan Sri Dr Zeti Akhtar Aziz said the Malaysian economy will continue to grow at a steady rate despite the volatile global economic environment due to the country’s strong fundamentals.
The total trade volume of the top 10 most active bonds increased by 23.05 per cent this week, recorded a trade volume of RM16.5 billion, compared to RM13.4 billion last week. The tender of the re-opening of RM2 billion SPK maturing on July 12, 2022 closed on February 10, 2015. The tender registered a strong bid-to-cover ratio of 2.4 times. The highest, average and lowest yields are 4.115, 4.103 and 4.080 per cent respectively.
On February 9, TSH Sukuk Ijarah Sdn Bhd issued a RM30 million three-year sukuk with a profit rate of 5.1 per cent. On February 11, TF Varlik Kiralama A S issued a RM150 million sukuk with a tenure of five years. On February 12, Alpha Circle Sdn Bhd issued a one-year sukuk with an issuance size of RM30 million. The sukuk is rated AA- IS by MARC and carries a profit rate of 4.8 per cent. On the same day, Perbadanan Tabung Pendidikan Tinggi Nasional issued a RM500 million 15-year sukuk. The sukuk carries a profit rate of 4.63 per cent. This sukuk is guaranteed by Government of Malaysia.
On February 12, RAM Ratings downgraded the issue rating of Golden Assets International Finance Ltd’s IMTN Programme of up to RM5 billion (2012/2027) to AA3(s) from AA2(s). At the same time, the outlook has revised to negative from stable. The downgrade is mainly due to the deterioration of GAR’s cashflow debt protection to levels no longer supportive of the previous assigned credit rating.
In the late evening of the same day, RAM Ratings has revised the outlook on the long-term ratings of Mudajaya Corporation Bhd’s Islamic Debt Programmes from stable to negative. The outlook revision is premised on Mudajaya’s poor performance and reduced earnings visibility as a result of a shrinking order book.