BPA Malaysia weekly bond market report 23 July 2017

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The Index increased by 0.264 per cent to close at 153.496 points from 153.092 points in the previous week.

The MGS yields shifted lower by two basis points (bps) to 8bps across the board, tracking the movement in the US Treasury market.

The Malaysian ringgit also strengthened to 4.2855 against the greenback from 4.2930 last week. On July 19, 2017, Department of Statistics Malaysia published the Consumer Price Index (CPI) for the month of June 2017.

The CPI grew 3.6 per cent (May: 3.9 per cent) as compared to the same month last year.

Among the major groups which recorded increases were the indices for transport (10.5 per cent), food and non-alcoholic beverages (4.3 per cent), recreation services and  culture (three per cent), health (2.6 per cent), restaurants and hotels (2.5 per cent) and housing, water, electricity, gas and other fuels (2.2 per cent).

On July 21, 2017, Bank Negara Malaysia (BNM) reported that the international reserves amounted to US$99.1 billion as at July 14, 2017.

The reserves position is sufficient to finance 7.9 months of retained imports and is 1.1 times the short-term external debt.

 

Top 10 most active bonds:

The total trade volume of the top 10 most active bonds increased to RM6.4 billion from RM5.4 billion last week.

The Malaysian Government Securities (MGS) maturing on September 30, 2024 topped the list with RM1.9 billion changed hands.

New Issuance(s):

On July 17, 2017, SPR Energy (Malaysia) Sdn Bhd (SPRE) issued 18 tranches of Islamic Medium Term Notes (IMTN) amounted to RM580 million.

The tenures range from one-year to 18-year with profit rates of 4.56 per cent to six per cent.

The IMTNs are rated AA3 with stable outlook by RAM Ratings.

On July 19, 2017, BEWG (Malaysia) Sdn Bhd issued five tranches of sukuk Wakalah amounted to RM400 million.

The tenures range from three-year to seven-year with profit rates of 5.1 to 5.5 per cent.

The sukuk are guaranteed by Beijing Enterprise Water Group Ltd and rated AAIS with stable outlook by MARC.