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Malaysia Bond And Sukuk: Quarterly Report 4Q 2018


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Quarterly Report 4Q 2018

4Q2018 – Gov Bond performance as expected

Malaysia Government Security (MGS) and Government Islamic Instrument (GII) yields for 2018 was disappointing especially for the shorter tenure (3-5 year) as expected from US trade war and increasing Fed Fund Rate.
However, local market shows improvement throughout the year as newly elected government continue to show clearer direction with the release of 11MP mid term review and Budget 2019.
 
GLOBAL MARKET
Overview

2018 is an eventful year for US market due to series of prominent event from the interest rate hike to the recent government shut down. However, US Treasury 10 years ended the quarter strong at 2.69% and expected to show support at 3.00%.

MY Government Bond
Overview

Local govies was volatile during the quarter starting weak in Oct and ending better by the end of the year probably due to low liquidity towards the year end holidays.

MY Corporate Bond & Sukuk
Overview

Corporate bond and sukuk in the AAA spectrum strengthen during the quarter and throughout the year as government bond continue to disappoint.
4Q18 issuances reached RM28.9b up by about 39% from 3Q 2018’s RM20.8b
4Q2018 - Market Overview
  

GOVERNMENT BOND AUCTION
Overview
Total Government new and reopening auction issued at RM18.8 billion during the quarter. The take up during the quarter is decent with the average BTC at 2.29x with the highest for 7-year GII 08/25 at 2.81x BTC and lowest demand for 20-year MGS 06/38 at 1.66x BTC. The year 2018 BTC averaging at 2.29x compared to 2.20x in 2017

4Q18 AUCTION

4Q18 AUCTION
 
For 1Q2019, there will be 3 MGS maturing for March amounting to of RM7.18 billion. There will be 4 auction of MGS and 5 GII for next quarter.





UPCOMING ISSUANCE 1Q2019

UPCOMING ISSUANCE 1Q2019

CORPORATE BOND & SUKUK
Overview 

Malaysia Corporate bond and Sukuk issuance for 4Q18 is higher by 39% at RM29.0 billion compared with 3Q18 issuance at RM20.8 billion and 38% lower compared to 4Q17 issuance at RM40 billion. Higher issuance towards the 4 quarter as the yield stabilize after a volatile middle of the year from the changes in government.






ISSUANCE 1Q2018

ISSUANCE 1Q2018

RATING OUTLOOK
 
There are 4 upgraded and 2 downgraded issuer during 4Q 2018.

Upgrade
  1. AMMB Holdings Bhd
  2. Bank of China (Malaysia) Bhd
  3. Al-Dzahab Assets Bhd
  4. Premium Commerce Bhd 2016 - A Class B Notes
Downgrade
  1. Jati Cakerawala Sdn Bhd
  2. Bright Focus Bhd

 

















4Q2018 - Rating Movement
 
Download Report
 

Disclaimer

This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.
 
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.