BPA Malaysia weekly bond market report 26 June 2016

0

TA03433Throughout the week, the European Union (EU) membership referendum in UK took centre stage. Market players were anxious leading to the voting day on 23 June 2016.

Early this week, news suggested voters may choose to remain in the EU had caused the equity and commodity market to rally.

However, on Friday, the actual result shown approximately 52 per cent of its citizen opted to cease the EU membership whereas 48 per cent chose to remain in EU. The domestic bond market has reacted mutedly over the result of the referendum.

The Thomson Reuters BPAM All Bond Index ended the week slightly higher by 0.09 per cent to close at 147.95 from 147.81 point last week.

That said, the foreign exchange market was extremely volatile this week as US dollar/ringgit and pound/ringgit rate shot up from 4.0185 and 5.9401 to 4.09 and 5.6884 respectively overnight on Friday.

 

Top 10 most active bonds:

The total trade volume of the top 10 most active bonds increased by 10.6 per cent to RM14.6 billion from RM13.2 billion transacted last week.

Two short-dated MGS maturing in 07/2016 and 10/2017 topped the list with a combined trade volume of RM4.7 billion.

 

New Issuance(s):

On June 20, 2016, Mumtaz Rakyat Sukuk Bhd issued a 10 non-call five-year sukuk with issuance size of RM300 million.

The profit rate is 4.95 per cent and it is rated AA3(s) with stable outlook by RAM Ratings. Mumtaz is a funding conduit for Bank Kerjasama Rakyat Malaysia Berhad.

On June 21, 2016, Al Dzahab Assets Bhd issued RM95 million worth of Class A sukuk with maturity ranging from three to seven years and a RM25 million Class B sukuk with maturity of 8 years. Class A sukuk carries profit rate between 5.00 and 5.70 per cent while the Class B sukuk carries profit rate of seven per cent. Class A sukuk is rated AAA while Class B sukuk is rated AA3 by RAM Ratings. All ratings come with a stable outlook.

On June 24, 2016, Chellam Plantations (Sabah) Sdn Bhd issued three tranches of Danajamin guaranteed sukuk amounted to RM150 million with tenure of five, seven, and 10 years.

The profit rates range from 4.90 to 5.45 per cent. The sukuk is rated AAA(fg) with stable outlook by RAM Ratings.