Thomson Reuters BPAM All Bond Index continued its upwards trend posting a gain of 0.08 per cent from 130.31 last week to 130.42. Lacking any fresh market drivers, market participants remain cautious.
Trading volume of the top 10 most active bonds in the Ringgit bond market was still dominated by sovereign bonds. The new 3.5-year MGS benchmark bond maturing on 15 July 2016 topped the list with RM5.059 billion changed hands during the week.
The total volume for the top 10 most actively traded bonds gained a significant 37 per cent as compared to previous week.
Meanwhile, the new 3.5-year MGS benchmark bond with issuance size of RM4.5 billion closed on 14 January 2013 with a strong bid-to-cover ratio of 2.488 times, slightly higher than 2.351 times seen in the previous reopening of seven-year GII benchmark.
The highest, average and lowest yield came in at 3.175 per cent, 3.172 per cent and 3.165 per cent respectively.
Looking at new bonds during the week, on January 18, 2013 Malakoff Power Bhd issued eight tranches of sukuk with tenure ranging from three months to 12 years and profit rates between 5.783 per cent and 6.982 per cent.
The RM5.6 billion issuance is used to replace Malakoff Corporation Bhd bonds which have been redeemed on the same day. MARC rated the new issuance AA-IS with stable outlook.
On January 18, 2013, Premier Merchandise Sdn Bhd issued RM25 million worth of two-year bond with a coupon of 3.70 per cent. The issuance is guaranteed by Maybank and rated AAA(bg) by MARC.
Loking at rating actions during the week, on January 14, 2013 RAM Ratings revised the outlook of New Pantai Expressway Sdn Bhd’s (NPE) RM250 million Junior Bai’ Bithaman Ajil Notes (Junior Notes) from stable to negative. The rating of the junior notes was reaffirmed at AA3.
The negative outlook on the Junior Notes signals that its rating will come under pressure upon the expiry of an unconditional and irrevocable corporate guarantee from IJM Corporation Bhd in respect of the Junior Notes prior to the full redemption of the Senior Notes. The last tranche of the Senior Notes will mature on October 31, 2014.
On January 16, 2013, MARC placed KMCOB Capital Bhd’s (KMCOB) Sukuk Murabahah Medium Term Notes on MARCWatch Negative.
The MARCWatch Negative reflects uncertainties tied to the timing of the completion of the internal reorganisation of Scomi Oilfiled Limited (SOL) and the reverse takeover of the New SOL Group by Scomi Marine Bhd (SMB), initially targeted for completion by end-2012.
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