Sunday, December 4

BPA Malaysia Weekly Bond Market Report

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The Thomson Reuters BPAM All Bond Index dropped by 0.252 per cent in the first week of trading post 14th General Election (GE14) held on May 9, 2018 to close at 156.621 points.

Bond market was generally bearish as Pakatan Harapan coalition defeated the incumbent Barisan Nasional government, in which Tun Dr Mahathir later sworn in to become the 7th Prime Minister of Malaysia.

Tun Dr Mahathir was quick to reassure the investors with the appointment of five eminent persons to aid the post GE14 economic recovery.

On May 17, 2018, BNM announced that the Malaysian economy expanded at a slower pace of 5.4 per cent year-on-year in the first quarter of 2018, underpinned by resilient domestic demand and improving external demand.

Top 10 most active bonds:

The top 10 most actively traded bonds surged to RM12.2 billion from RM2.8 billion as bond investors flocked to the market post GE14. The off-the-run MGS maturing on 28 September 2018 topped the chart with RM1.8 billion changed hands.

Sovereign auction(s):

On May 14, 2018, the re-opening of the RM3 billion, seven-year benchmark GII maturing on August 15, 2025 closed with a strong bid-to-cover ratio of 3.397 times.

The highest, average and lowest yield came in at 4.218 per cent, 4.202 per cent and 4.180 per cent respectively.

New issuance(s):

On May 18, 2018, Telekom Malaysia Bhd issued a 10-year Islamic Medium Term Notes (IMTN) amounted to RM250 million. The profit rate is 4.73 per cent and the IMTN is rated AAA with stable outlook by RAM Ratings.