It is a week lack of economic data release but packed with cautious sentiments in domestic bond market as market players turned on risk-off mode ahead of the Budget 2018 announcement by the Prime Minister of Malaysia as well as the Federal Open Market Committee (FOMC) meeting which is scheduled to take place this coming week.
As a result, the Index shed 0.411 per cent over the week to close at 154.389 from 155.026 points last week.
The MGS curve bear steepened with the whole MGS curve shifted up by one to 18bps during the week. The newly reopened 30-year MGS, particularly, saw its yield climbed by 18bps over the week.
Over to the corporate segment, yield curves shifted up by one to seven bps across the board.
The Malaysian ringgit, on the other hand, continued to weaken against the US dollar to end the week at 4.2415 from 4.2260 previously.
Trading activities in the ringgit bond market picked up with the total traded amount more than doubled from RM4.1 billion last week to RM9.4 billion this week.
The short tenure MGS papers maturing on February 7, 2018 and March 1, 2018 garnered the most attention with a combined traded amount of RM4.5 billion.
On October 24, 2017, Bank Negara Malaysia announced the tender details for the re-opening of the RM2 billion 30-year benchmark MGS maturing on March 15, 2046.
The tender closed on October 26, 2017 with a weak 1.603 bid-to-cover ratio of times.
The highest, average and lowest yield came in at five, 4.957 and 4.85 per cent respectively.
On October 23, 2017, TRIplc Medical Sdn Bhd (TMSB) issued 14 tranches of sukuk Murabahah amounted to RM639 million.
The tenures range from five to 18 years with profit rates of 4.75 to 5.9 per cent. The sukuk are rated AA1 with stable outlook by RAM Ratings.
TMSB is a single-purpose entity fully owned by Bursa-listed TRIplc Bhd to construct a teaching hospital and medical academic complex in Puncak Alam, Selangor and thereafter to undertake asset management services for the project.
On October 24, 2017, Sabah Credit Corporation issued a two-year Islamic Medium Term Notes (IMTN) amounted to RM50 million, with a profit rate of 4.55 per cent. The issues are rated AA1 with stable outlook by RAM Ratings.
On October 27, 2017, MARC revised its rating outlook for WCT Holdings Bhd’s RM1 billion Medium-Term Notes (MTN) Programme and RM1.5 billion Sukuk Murabahah Programme from Negative to Stable and concurrently affirms the ratings at AA- and AA-IS respectively.
The outlook revision was supported by the issuer’s improving liquidity and leverage positions following a share placement exercise and warrant conversion.