The Thomson Reuters BPAM All Bond Index increased by 0.22 per cent to 129.17 from 128.89 in the previous week.
The gain was mostly contributed by decrease in MGS yields, in which yields were seen shedding two basis points (bps) to eight bps from the three-year tenure onwards on the back of an unexpected benchmark interest rate cut by the central bank of Thailand on Wednesday.
Bank of Thailand surprised the market by cutting the country’s benchmark interest rate to 2.75 per cent from three per cent previously, citing weak global demand due to slowdown in China, fiscal risks in the US and resolution risks with regards to the eurozone area’s sovereign debt crisis.
On the local front, Malaysia’s Consumer Price Index (CPI) for September 2012 continued to trend lower and registered a reading of 1.3 per cent yearon- year.
Malaysia’s CPI has been seen drifting lower since it registered a reading of 3.5 per cent in June 2011.
Meanwhile, the list of top 10 most actively traded bonds this week is, yet again, dominated by sovereign papers.
Total traded volume of the top 10 most actively traded bonds increased by 48 per cent to circa RM15.08 billion from RM10.16 billion in the previous week.
Looking at the summary of new private debt securities (PDS) issuance during the week, on October 16, 2012, AmBank (M) Bhd issued a RM710 million 10-year non-callable five-year (10NC5) subordinated bond with a coupon rate of 4.45 per cent.
The issuance is recognised as Tier 2 capital of the bank and is rated A1 by RAM Ratings.
On the same day, Noble Group Ltd, Asia’s largest diversified commodities trading company, issued a RM300 million sukuk with a profit rate of 4.50 per cent.
The issuance is rated AA2 by RAM Ratings.
Disclaimer: Information on this page is intended solely for the purpose of providing general information on the Ringgit Bond market and is not intended for trading purposes. None of the information constitutes a solicitation, offer, opinion, or recommendation by Bond Pricing Agency Malaysia Sdn Bhd (“BPAM”) to buy or sell any security, or to provide legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment. Investors are advised to consult their professional investment advisors before making any investment decision. Materials provided on this page are provided on an “as is” basis, and while care has been taken to ensure the accuracy and reliability of the information provided in this page,BPAM provides no warranties or representations of any kind, either express or implied, including, but not limited to, warranties of title or implied warranties of fitness for a particular purpose, accuracy, correctness, non-infringement, timeliness, completeness, or that the information is always up-to-date.