The Index gained 0.048 per cent over the week to close at 155.026 points. The MGS curve flattened with the yields in the one-year to 10-year region rose up to two bps while the yields from the 15-year onwards dropped by one bp to two bps.
Meanwhile, the Malaysian Ringgit slightly weakened against the US dollar to end the week at 4.2260 from 4.2205 previously.
Market was generally cautious ahead of President Trump’s imminent announcement on the nominee for the new Federal Reserve’s chairman as well as the Malaysian Budget 2018 to be tabled on October 27, 2017.
On October 20, 2017, Department of Statistics Malaysia’s Consumer Price Index (CPI) release indicated the CPI has surged to 4.3 per cent year-on-year for the month of September 2017, much higher than the 3.7 per cent recorded in August.
Among the major groups which recorded increases were the indices for transport (15.8 per cent), food & non-alcoholic beverages (4.6 per cent), furnishings, household equipment and routine household maintenance (2.8 per cent), restaurants and hotels (2.6 per cent), health (2.5 per cent) and housing, water, electricity, gas & other fuels (2.4 per cent).
On the same day, Bank Negara Malaysia (BNM) reported that the international reserves amounted to USD101.4 billion as at 13 October 2017, up from USD101.2 billion recorded two weeks ago.
The reserves position is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debt.
Top 10 most active bonds:
Trading activities in the ringgit bond market remained depressed in this festive holiday-shortened week.
The trade volume of the top 10 most active bonds slumped to merely RM4.1 billion, from RM5.9 billion recorded last week.
The newly issued seven-year government guaranteed PR1MA sukuk topped the list with approximately RM1 billion changed hands.
New Issuance(s):
On October 16, 2017, AmBank (M) Bhd issued a 10-non-call-five-year Basel III-compliant Subordinated Notes worth RM570 million.
The Subordinated Notes bear a coupon rate of 4.90 per cent and is rated AA3 by RAM Ratings with a stable outlook.
On October 17, 2017, Imtiaz Sukuk II Bhd issued a three-year and a five-year Islamic Medium Term Notes (IMTNs) amounted to RM700 million. The profit rates of the IMTNs are 4.45 and 4.57 per cent respectively. The issues are rated AA2(s) with stable outlook by RAM Ratings.
PR1MA Corporation Malaysia issued a five-year and seven-year government guaranteed IMTNs with total issuance size of RM2.5 billion. The profit rates of the IMTNs are 4.08 per cent and 4.34 per cent respectively.