Saturday, July 20

BPA Malaysia Weekly Bond Market Report


The Index shed 0.203 per cent to close at 160.075 points from 160.401 in the previous week as concern over the economic health of the emerging market hogging the

The Malaysian ringgit took a heavy loss against the greenback to close at 4.1445 from 4.1105 just before the National Day holiday. The MGS yields shot up between 2bps and 14bps across all tenure points.

On September 5, 2018, Bank Negara Malaysia (BNM) kept the benchmark Overnight Policy Rate (OPR) at 3.25 per

While maintaining the view that the Malaysian economy remain on a steady growth path, BNM nonetheless, said the economy faces downside risks stemming from heightened trade tensions, prolonged weakness in the mining and agriculture sectors and some domestic policy uncertainty in the immediate term.

On the same day, trade statistics released by the Department of Statistics Malaysia (DOSM) shows Malaysia’s exports rose of 9.4 per cent year-on-year in July to RM86.1 billion while imports recorded a growth of 10.3 per cent to RM77.8 billion. As a result, trade surplus came in at RM8.3 billion.

On September 6, 2018, it was reported that BNM international reserves amounted to US$104.4 billion as at August 30, 2018. The reserves position is sufficient to finance 7.5 months of retained imports and is 0.9 times the short-term external debt.

Top 10 most active bonds:

The top 10 most active bonds increased to RM10.4 billion from RM6.6 billion last week. The five-year benchmark GII maturing on November 30, 2023 recorded the highest trade volume of RM1.7 billion.

New issuance(s):

On September 6, 2018, Hong Leong Financial Group Bhd issued a three-year senior notes worth RM400 million. The senior notes carry coupon rate of 4.35 per cent and are rated AA1 with stable outlook by RAM Ratings.

On September 7, 2018, Cagamas Bhd issued a two-year and a three-year Medium Term Notes (MTNs) with coupon rate of 3.95 per cent and 4.05 per cent respectively.

The total issuance size is RM600 million.

The MTNs are rated AAA with stable outlook by both RAM Ratings and MARC.

Prasarana Malaysia Bhd issued four tranches of Islamic Medium Term Notes (IMTNs) that mature in three, five, seven and 10 years with combined issuance size of RM1 billion. The profit rates are 3.94, 4.03, 4.16 and 4.32 per cent respectively.

The IMTNs are guaranteed by Government of Malaysia and thus exempted from

Fortune Premiere Sdn Bhd issued a five-year and a seven-year IMTNs that carry profit rates of 4.85 and 5.05 per cent respectively.

The combined issuance size is RM1.2 billion. The IMTNs are rated AA IS with stable outlook by MARC.