Looking at the BPA Malaysia All Bond Index Performance, the sovereign bond market was still plagued by heightened default risk posted by Greece in the eurozone.
However, except for the three-year MGS benchmark, some bargain hunting activities were observed along the yield curve from the belly onwards. The market was currently searching for fresh leads pending the Budget 2012 announcement next Friday.
The BPA Malaysia All Bond Index gained 0.15 per cent from 122.89 to 123.07 points compared with the 0.11 per cent drop seen last week.
Any further improvement in risk appetite was depended on macro economic outlook in US and Europe front. Sovereign papers were still the top ten most actively traded bonds during the week.
The most actively traded sovereign bond this week was the 10-year MGS benchmark with a total traded volume of RM2.65 billion.
New issuances during the week included Offshoreworks Capital Sdn Bhd, which was rated BB by MARC, which had issued RM39 million worth of one-year bonds at coupon rate of 12 per cent.
Pelabuhan Tanjung Pelepas Sdn Bhd had issued RM265 million worth of Government Guaranteed nine-year bonds.
The coupon rate was 4.039 per cent. The new seven-year MGS benchmark maturing in September 2018, with total issuance size of RM4.5 billion and coupon rate of 3.58 per cent was issued on September 28, 2011.
On September 30, 2011, Woori Bank issued RM315 million worth of three-year bonds with a coupon rate of 4.20 per cent while AmIslamic Bank Bhd issued RM600 million 10-year non-call five-year (10NC5) subordinated bonds with coupon rate of 4.40 per cent.
Lastly, TSH Sukuk Ijarah Sdn Bhd issued RM30 million worth of five-year bonds which carried a coupon rate of 4.30 per cent.