Malaysia bond market weekly update 10 December 2017

Over the week, the Thomson Reuters BPAM All Index rallied to close at 155.411 points, an increase of 0.027 per cent.

The MGS yields ended the week mixed with 10-year curve point increased by 9bps.

The Malaysian Ringgit appreciated marginally to close at 4.0855 from 4.0875 against the greenback.

On December 6, 2017, the Department of Statistics reported that ’s exports in October increased by 18.9 per cent while its imports grew by 20.9 per cent year-on-year.

The exports valued at RM82.4 billion and imports registered at RM71.9 billion.

As a result, Malaysia recorded a trade surplus of RM10.6 billion.

Top 10 most active bonds: The trade volume of the top 10 most active bonds increased slightly to RM7.0 billion from RM5.9 billion last week.

The 10-year on-the-run benchmark MGS maturing on 16 November 2027 topped the chart with RM1.5 billion traded.

Sovereign Auction(s):

On December 6, 2017, the reopening auction for the RM2 billion 10-year benchmark MGS maturing on November 16, 2027 closed with lacklustre bid-to-cover ratio of 1.530.

The highest, average and lowest yield came in at 3.988, 3.946 and 3.890 per cent respectively.

New Issuance(s):

On December 4, 2017, Northport (Malaysia) Bhd issued a five-year Islamic Medium Term Notes (IMTN) with issuance size of RM100 million and profit rate of five per cent.

The issuance is rated AA-IS with stable outlook by .

On December 5, 2017, Energy Bhd issued a 15-year IMTN with issuance size of RM1 billion and profit rate of 5.32 per cent.

The issuance is rated AA1 with stable outlook by RAM Ratings.

On December 8, 2017, SkyWorld Capital Bhd issued a two-year IMTN with profit rate of 4.75 per cent.

The issuance size is RM50 million and is rated AA3 with stable outlook by RAM Ratings.

Silver Sparrow Bhd issued one tranche of Danajamin guaranteed and one tranche of bank guaranteed one-year MTN with a combined issuance size of RM100 million.

The coupon for both tranches are set at 4.5 per cent.

The issues are rated AAA(fg) and AAA(bg) respectively with stable outlook by RAM Ratings.

Rating action(s):

On December 7, 2017, RAM Ratings has lifted the negative Rating Watch on Cendana Sejati Sdn Bhd’s (the Issuer) RM360 million Senior Murabahah MTN Programme (2015/2025).

Concurrently, they have downgraded the programme’s long-term rating from AA1 to BB2, and revised its outlook to negative. The rating outlook has been revised to negative as RAM believes that Masraf’s remedial actions are still subject to ramp-up risk.

The outlook also reflects the high likelihood of further multi-notch rating downgrades as the transaction approaches the Senior Sukuk’s respective maturities, given the portfolio’s altered repayment profile.

Source: Borneo Post Online

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