BPA Malaysia weekly bond market report 17 May 2015

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The Thomson Reuters BPAM All Bond Index added 0.13 per cent to end the week at 141.08 from 140.9 registered last week. The Malaysian ringgit also closed strongly against US dollar at 3.564.

On Friday, Department of Statistics Malaysia released the first quarter gross domestic product (GDP) number that indicates an economic growth of 5.6 per cent year-on-year as the private consumption picked up pace before the implementation of Goods and Services Tax.

However, net exports registered a negative growth of 10.2 per cent in the quarter.

Top 10 most active bonds:

The total amount of the top 10 most actively traded bonds has increased by 84 per cent to RM12.5 billion from RM6.8 billion last

week. The newly issued three-year benchmark GII topped the list with RM3.2 billion changed hands.

 

Sovereign bond auction:

On May 12, 2015, BNM announced the tender for the RM4 billion new three-year benchmark GII maturing on May 15, 2018.  The auction closed on May 14, 2015 with a decent bid-to-cover ratio of 2.6 times. The highest, average and lowest yields are 3.525, 3.508 and 3.5 per cent respectively. The bond was issued on May 15, 2015.

 

New bond(s):

There were a few new issuances on May 15, 2015: KT Kira Sertifikalari Varlik Kiralama AS issued a five-year RM200 million sukuk with profit rate of 5.72 per cent. The sukuk is rated AA3(S) by RAM Ratings with a stable outlook. Sunway Bhd issued a five-year RM100 million bond with coupon rate of seven per cent. The bond is rated A2 with a positive outlook by RAM Ratings. DRB-Hicom Bhd issued a perpetual sukuk that is callable in the fifth year worth RM50 million. The profit rate is 7.48 per cent. The sukuk is rated AIS with a stable outlook by MARC.